13 more companies to venture into insurance market

At a time when the entire insurance sector is plagued by unethical competition, thirteen more insurance companies are set to make their foray into the country's insurance market, reports Abhiyan Weekly.

The Insurance Board (IB) is carrying out necessary homework to issue licenses to these new players to commence their services.

Of the 13 insurance companies which are shortly coming into operation, eight are life insurance companies whereas the remaining five will provide non-life insurance service, the report said.

It is learnt that the people who have invested in these new companies have different background ranging from ordinary citizens to even Non-Resident Nepalese (NRN)'s.

The Insurance Act entitles the IB to issue operating licenses to non-life insurance companies directly. However, at the same time, it is mandatory for the board to get prior approval from the Finance Ministry to issue licenses to life insurance companies.

With the formal entry of these new insurance companies, the total number of insurance companies in the country will stand at 38. Most of the new insurance companies are said to have made necessary arrangements regarding logistics and manpower with the hope of coming into operation at the earliest.

"However, they are now complaining the lethargy being displayed by the board to issue operating licenses promptly,'' the political-economic weekly quoted a source as saying.
Source:
Nepalnews.com