The Nepal Insurance Regulatory Authority has issued a direction requiring life insurance companies and micro-life insurance companies to mandatorily reflect first insurance premiums, renewal premiums, and lapsed life insurance policies when setting professional targets for the upcoming fiscal year. The requirement applies to target-setting for central office staff, departments, provincial offices, branch offices and sub-branch offices. Insurers have also been instructed to prioritise policies for which premiums are paid regularly in full, after the Authority observed a tendency to focus on high-premium policies that it links to reduced access for low-income groups, difficulties in renewals, and increased policy lapse and surrender.
Nepal Insurance Regulatory Authority 2025-07-14
Nepal Insurance Regulatory Authority directs life and micro-life insurers to include first and renewal premiums and lapsed policies in performance targets
The Nepal Insurance Regulatory Authority mandates life and micro-life insurers to include first insurance premiums, renewal premiums, and lapsed policies in professional target-setting for the next fiscal year. This applies to all levels of staff and offices. Insurers are also instructed to prioritize policies with regularly paid premiums to address issues of reduced access for low-income groups and increased policy lapses.