Kathmandu – Rajesh Kumar Agrawal, President of the Confederation of Nepalese Industries (CNI), has emphasized that the insurance sector is an integral part of the economy. Speaking at the 2nd National Insurance Discourse 2025, organized by Banking News, Agrawal highlighted the significance of focusing on key issues related to the insurance industry.

Agrawal pointed out that insurance companies have been mandating coverage in areas beyond the immediate needs of industries, thereby increasing operational costs for businesses.

“Today’s discourse focuses on the development of the insurance sector, market strategies, technology adoption, and the expansion of Nepal’s reinsurance market. I believe the discussions will also address the impact of current policies on businesses and propose necessary reforms for the future,” he said.

He urged regulatory authorities to foster a competitive insurance market by refraining from setting insurance rates and instead allowing market forces to determine pricing. According to Agrawal, encouraging competition among insurance companies would lead to market growth. “Policies should not solely protect insurance companies but must also consider the broader impact on other sectors of the economy. The Insurance Board should carefully evaluate and implement policies that strike a balance,” he added.

Agrawal advocated for a framework allowing policyholders to purchase insurance from any provider, including foreign companies, if local premiums are higher and contribute to increased production costs. He also stressed the need to expand the investment scope of both life and non-life insurance sectors.

“If insurance companies operate within rigid limits and narrow boundaries, they themselves could face challenges in the future,” Agrawal warned.

He called for reforms in Nepal’s insurance policies to ensure a balanced approach that supports the growth of the insurance sector while minimizing its impact on industrial and economic activities.