State-owned insurers in fragile condition, poor financial performance

Kathmandu. The situation is critical due to the poor financial performance of the state-owned insurance companies.

The data presented by the Nepal Insurance Authority in the discussion with the Finance Committee showed this. Currently, there are government-owned National Life Insurance Company, Rastriya Insurance Company and Nepal Reinsurance Company.

State of National Life Insurance Company

• Fiscal Year 2080. 81 to 2081. 82 Profit Decline
• Investment of about Rs 53 billion so far

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TAG_OPEN_li_61 So far, there are about 6 lakh active insured members.

State of National Insurance Company

{{TAG_OPEN_li_59}Fiscal Year 2080. 81 to 2081. 82 Itself Profit Decline

• Investments worth more than Rs 8 billion so far

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Nepal Reinsurance Company

• Net profit declines in the second quarter of the current financial year

Net worth of over TAG_OPEN_li_56 Rs 20 billion reduced to Rs 12.50 billion

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• Total insurance premium collection continues to decline

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• More investment of Rs 18 billion.

Efforts to improve the performance of the Insurance Authority

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• Instructions to Deliver Specified Capital

Tripartite discussion with the Ministry of Finance, Insurance Authority and concerned insurers on different dates to improve the financial condition

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• Directive to hold an immediate general meeting
• Instructions to complete the audit on time, to submit the details of all accounts and progress report to the Authority every 15 days
• Continuous meetings and discussions with the top management level employees of the insurer regarding timely audit

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• National Life Insurance Company for the fiscal year 2076. 77 to 2078. The actuarial valuation report of the risk-based capital of 3 years up to 79 years has been concessioned for 3 years in a lump sum of 3 years

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• Directive to the National Insurance Company to establish a regular structure from July 28, 2082 and submit the progress report to the finance chief every 15 days
• The CEO and Finance Chief of the National Insurance Company should be informed to the Executive Director on a monthly basis and the top management including the chairman should be instructed to submit a progress report in 2-2 months

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• Regular discussions, correspondence and alerts have been held to get the actuarial evaluation report approved on time by strengthening the RAFSAF and other internal control system of Nepal Reinsurance Company

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• As a result, the financial year 2080 of Nepal Reinsurance Company. The actuarial valuation report of the risk-based capital of 81 is approved and the financial statement is in the process of being approved.