The Insurance Board (IB) has set a target to expand life insurance cover to 15% of the country's population from the current 8% in the next two years.
Simplifying claim settlement procedures and educating the public, particularly in rural areas, to encourage more people to buy insurance as a host of new insurance companies have entered the scene will be major items on the regulator's agenda, reported The Kathmandu Post.
Currently, migrant workers leaving for foreign employment are required to buy mandatory life insurance, but very few buy policies on their own.
IB Chairman Chiranjibi Chapagain said that the regulator issued permits to new insurance companies with the expectation that they would expand insurance coverage across the country beyond the Kathmandu Valley.
The board recently issued licences to 10 new insurance companies, bringing the total number to 18 in the Nepali market.
“We have planned to create a provision requiring them to conduct a certain portion of their business in locations outside the Valley,” Mr Chapagain said. Kathmandu Valley is the hub of Nepal.