Kathmandu – Pushkar Raj Paudel, President of the Life Insurance Association and CEO of Citizen Life, has emphasized that while expanding the scope of insurance offers significant opportunities, it also presents challenges for the sector. Addressing the 2nd Insurance Discourse, Paudel highlighted that insurance services have reached rural areas through 350,000 agents.

“We are mobilizing capital from remote regions with the help of 350,000 agents and other mediums. If anything is actively working to formalize the informal economy, it is life insurance,” he said. “By bringing it into the formal economy, life insurance companies are supporting the nation’s economy.”

Despite the potential, Paudel pointed out that the state has failed to effectively mobilize the insurance sector.

He noted several problems in the insurance sector, urging focus on three key aspects to address the challenges in life insurance. “If we address the cost of acquisition, the cost of business, and the ecosystem, we can lower the overall cost of insurance,” he explained. Paudel also pointed out that the servicing cost in insurance remains significantly high.