Nepal: Microinsurance gets a huge push
Source: Asia Insurance Review | Aug 2017
Microinsurance has now begun to gain momentum in Nepal with the release of the microinsurance directives for Nepalese insurers by the Beema Samiti (Insurance Regulatory Authority of Nepal).
With the purpose of conducting the microinsurance business in an efficient and unified manner, the 17 non-life insurers in Nepal have formed a pool through which each of them will get to work in specified areas across the country to promote agriculture insurance.
A MoU was recently signed between the Nepal Insurance Association (NIA) and a number of Micro Finance Institutions (MFIs) in Nepal in the presence of representatives from the Beema Samiti. These MFIs will work as distribution channels for microinsurance products.
UK Aid and Louis Berger (through their local incorporated organisation, Sackchyam), framed the rules and regulations for the pool and its functioning and they have also agreed to subsidise the administration, research and business promotion costs of the pool through their Challenge Fund.
The Beema Samiti is also working with GIZ-RFPI on the regulatory aspects of microinsurance in Nepal and is also a member of the Mutual Exchange Forum of Inclusive Insurance Network (MEFIN) that has a presence in seven countries including Vietnam, Pakistan, Indonesia, Philippines, Magnolia, Thailand and Nepal. The GIZ-RFPI office in Asia coordinates MEFIN members in building their capacity through mutual exchange of information, experiences and training. A