Banking News – The Nepal Insurance Authority (NIA) has concluded an interaction program reviewing the two-year implementation of the Risk-Based Capital (RBC) framework in Nepal’s insurance sector, with discussions focusing on insurers’ experiences and proposed revisions to the regulatory framework.

The program, held at the Authority’s central office in Kupondole, brought together insurance industry stakeholders to assess the progress of RBC implementation and identify areas for improvement.

Addressing the event, Sushil Dev Subedi, Executive Director of the Nepal Insurance Authority, said the implementation of the Risk-Based Capital framework has been progressing successfully. He encouraged insurers to provide practical recommendations based on both the opportunities and challenges experienced during the two-year transition period.

Subedi stated that the Authority would continue to refine the RBC framework in line with industry feedback to ensure that the regulations remain practical and responsive to evolving market needs.

Dhruva Timilsina, Director at the Authority, said the RBC framework would continue to be strengthened through continuous learning, evaluation, review, and alignment with international best practices.

During the program, Nirmala Malla, Deputy Director of the Nepal Insurance Authority, presented a review of the first two years of RBC implementation and outlined proposed amendments. She noted that the Authority expects insurers to improve data quality and reporting systems, strengthen actuarial capacity, foster a stronger risk management culture, enhance institutional risk governance, and ensure the timely submission of regulatory reports.

Prabin Raman Parajuli, President of the Life Insurers’ Association of Nepal, expressed appreciation to the Authority for incorporating recommendations submitted by the association regarding the implementation of the RBC framework.

Participants also shared their practical experiences with the RBC system and discussed existing and proposed provisions related to the Risk-Based Capital and Solvency Directives.

On the occasion, Basant Prasad Bohara, Statistician at the Nepal Insurance Authority, announced that the Authority has begun publishing an annual statistical publication covering Nepal’s insurance sector. The first edition, titled “Insurance Statistical Year Book 2081/82,” has now been released.

The program was attended by chief executive officers of life insurance, non-life insurance, and reinsurance companies, along with heads of risk management departments and designated RBC focal persons. The session was moderated by Karuna Thapa, Assistant Director of the Nepal Insurance Authority.