Kathmandu:Even 14 months after the end of the financial year, majority of life insurance companies have not been able to complete the actuarial valuation. So far, only eight out of nineteen life insurance companies have completed actuarial valuation.
As per the information given by the insurance companies, Nepal Life, Prime Life, Asian Life, Sun Nepal Life, Mahalakshmi Life, Jyoti Life have completed the actuarial valuation of 2076/77 and submitted it to the Insurance Board. The audit report can be prepared only after the insurance board approves the valuation through its actuary.
Insurance companies that have completed actuarial valuation will be able to set a bonus rate for the policyholder. If no problem is found in the valuation submitted by the companies, the board will pass it in 10/15 days. However, if any objection is found in the valuation report, the board requests for revision. At the same time, it takes months for the valuation of some companies to pass.
As soon as the actuarial valuation report is passed, the insurance companies have to prepare the audit report and get re-approval from the insurance board. After passing the audit, the general assembly will be convened. This year, insurance companies have delayed valuations, citing actuarial problems. All companies have to send to India for actuarial valuation. Actuaries in India do not give much priority to Nepali insurance companies.They do not give priority to Nepali insurance companies as they will hire other big companies in the world. Companies say that there has been a delay in this process.
Companies are also unable to hire actuaries internally as consultants. If the quarterly financial statements are to be worked out from actuary, there will not be much difficulty in the end. But insurance companies are not able to manage it properly.
From the previous financial year, insurance companies have to prepare audit reports according to the NFRS system. Due to which, there is some delay in preparing the financial statements.