"Strengthening internal regulation and good governance within insurance institutions is crucial"

File image of Sharad Ojha

KATHMANDU, MARCH 23: Nepal Insurance Authority Chair Sharad Ojha has emphasized the need to strengthen internal regulation and good governance within insurance institutions rather than relying solely on regulatory interventions.

Speaking at an interaction program titled "Insurance Sector Now," organized by the Economic Media Association Nepal (EMAN) to felicitate his appointment as Chairman, Ojha stated that regulatory measures would be taken based on stakeholder feedback and an analysis of the insurance sector’s contribution.

"Insurance companies should prioritize internal good governance and self-regulation in addressing underwriting challenges rather than depending solely on regulatory intervention. We will implement necessary regulatory measures while considering this sector’s role in national development," Ojha remarked.

He pledged to continue past best practices while making reform efforts more systematic and effective. He also highlighted ongoing discussions with key stakeholders—including insurers, intermediaries, and surveyors' associations—to improve the sector.

Ojha further stressed the importance of collective efforts to strengthen the financial stability of insurance companies. He noted that previous directives issued by the Nepal Insurance Authority (NIA) are being consolidated into an integrated framework for better implementation.

Meanwhile, insurance expert Dr. Rabindra Ghimire underscored the need to maximize the use of information technology in developing skilled manpower for the industry. He advocated for collaboration with educational institutions, training centers, and research organizations to enhance human resource capacity.

Dr. Ghimire also pointed out the issue of insurance companies underwriting beyond their capacity due to unhealthy competition. Additionally, he emphasized the need for stricter scrutiny of potential money laundering activities within the sector.