Kathmandu: The Government of Nepal has introduced a strategic regulatory measure requiring all domestic insurance companies to channel at least 20 percent of their reinsurance business through the Nepal Reinsurance Company.
This policy is designed to retain a larger portion of insurance premiums within the national economy and bolster the growth of the domestic reinsurance industry.
Finance Minister Dr Swarnim Waglé unveiled this provision on Friday while presenting the federal budget for the upcoming fiscal year 2083/84 during a joint session of the Federal Parliament.
By mandating this minimum threshold for local reinsurance, the administration aims to curb the significant outflow of foreign currency and enhance the overall financial resilience of the country’s insurance sector.
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