Kathmandu:The report has been prepared by a four-member study committee formed by the Insurance Board to issue a license to a microinsurance company.The study committee submitted its report on Monday.
The committee concluded that the penetration of microinsurance in Nepal is below 10 percent and a separate company is needed to expand its reach.A survey conducted by the study committee has also shown the need of specialized microinsurance company is needed in Nepal.
The Insurance Board had formed a four-member study committee on June 19 under the coordination of Director Sushil Dev Subedi with Deputy Director Poonam Gyawali Shrestha, Chief Executive Officer of Sagarmatha Insurance Company Chunki Chhetri and Chief Executive Officer of Citizen Life Insurance Poshak Raj Poudel.
The committee had directed to study and prepare a report within 20 days.But during this period the government changed and the study delayed.
Although the study report concluded that there is a need for microinsurance companies in Nepal, it has not mentioned how many are needed and the scope.
According to the law, even if the license of the microinsurance company can be issued by the Insurance Board itself, the green signal of the ministry of finance will be required to issue license.