Kathmandu: The lack of liquidity in banks and financial institutions(BFIs) has adversely affected the business of life insurance companies. Life insurers have not been able to do business as expected due to lack of savings and cash with potential insurers. According to insurers, the growth rate of insurance premiums could shrink if banks continue to lack liquidity.
Every day, the head of the market management department and even the chief executive officer are busy for rigorous follow up to the branch managers and senior agencies for first premium insurance.
The market condition is not favorable to achieve the desired results, A manager shared, while on the other hand, the top level management is unnecessarily a branch manager complained, if such tension remains for some time, many managers may have to flee.
It is natural for the branch managers of insurance companies to feel stressed when the management repeatedly asks why we have not been able to achieve the target, A regional manager commented.
According to the branch managers, even though the Insurance Board(IB) has implemented the provision of surrender value only after the completion of 3 years, some life insurers are recommending surrender value to the BFIs for loan against the collateral of recently issued insurance policies.
According to the branch managers and marketing managers, despite working harder than before for the sale of insurance policies, no satisfactory achievement has been achieved at the moment.
The life insurers are making investment of life insurance fund in fixed deposit by signing an agreement with a bank that is ready to pay high interest. However, as the deal is being done by the corporate office, the branch manager of life insurers have not much tools to influence BFIs managers for favor in life insurance business.
