The Nepal Insurance Regulatory Authority issued supervisory instructions to life insurance companies updating its bancassurance issuance guidance and setting new constraints on policy issuance and agent incentives around fiscal year-end processing. For bancassurance, the Authority removed the 70-year age limit that had been specified in point 3 of its requirements for issuing bancassurance. Separately, to address issues affecting financial statement preparation and compliance with the Authority’s directives at fiscal year-end, it instructed that insurance proposals must not be approved on the last day of each fiscal year, while policies may still be issued for proposals accepted before that day. It also prohibited setting agent business targets, paying incentives, or issuing policies on the fiscal year’s last day, and required that policies issued on the 28th and 29th of Ashad (the final month of the Nepali fiscal year) be excluded from that month’s targets, incentives, and commissions and instead counted in the following month.
Nepal Insurance Regulatory Authority 2025-07-08
Nepal Insurance Regulatory Authority removes 70-year age cap for life bancassurance and restricts fiscal year-end policy approvals
The Nepal Insurance Regulatory Authority updated its bancassurance guidance, removing the 70-year age limit for issuance. It also imposed new constraints on policy issuance and agent incentives around fiscal year-end, prohibiting approvals on the last day and excluding policies issued on the 28th and 29th of Ashad from that month's targets and incentives.