First Re Insurance Company in Nepal

First Re Insurance Company in Nepal

Under the joint venture of Nepal government and insurance companies in Nepal, the first re insurance company is established in Nepal. The company was established in 2071 B.S.

Due to this, the large amount of money that are being send to foreign country in the name of re insurance will be reduced gradually. Previously due to armed riot from Maoist and different political and economical condition, lot of insurance company is working really hard. So to save different insurance company from loss, an accidental insurance fund was established. Nepal government and few insurance companies share their capital in this company.

Firstly, we hear many new regarding terrorism and political violence in different countries in the world.  Many countries in the world have re insurance policies.  In today world there is no big news that there may be violence and terrorism. Nepal also need to follow international practice and rules and must apply steps to minimize such loss.

The emergency insurance fund that was established in 2060 is now converted into Re insurance company. The Nepalis Government has 43 percentages and other insurance company has 57 percentage of share investment. The company has 18 percentage of life insurance and 39 percentage of non life insurance like a auto insurance, fire insurance. The company has capital of 5 Arab. The company has not allocated shares for general people.

In simple reinsurance is insurances for insurances companies. It is means by which an insurances companys can save itself from risks and losse. The company who requests for the cover is called cedant and ther reinsurer is called the ceded. Due to establishment of reinsurance in the country, the company has save lot of money from being spent to foreign country. Lots of Insurance Company has done reinsurance to various reinsurance companies in India and African countries.  The company aims for transaction for more than 3 Arab for first fiscal year.  Most of the insurance company will directly get benefit from this as their loss in their money to foreign country will decrease. Most of the insurance company has done reinsurance to foreign reinsurance in the start of fiscal year. The insurer will have to pay lesser for charges than that to foreign companies. Lots of foreign companies are interested in investing in the first Re insurance company established in the country. This will flow positive message to the people in the world and there will be more changes of investment of foreign companies in different sector of development.

According to the CEO of the company, few Indian companies are interested in the investment.  Until the first meeting, different people from different insurance companies and member from government will be general member of the company. The country lacks lot of skilled manpower in insurance field. Lot of renowned and big Reinsurance companies is closed due to loss. So there is lot of risk and challenge for this new Reinsurance Company.

At last, Nepali people are still has no full information about insurance and reinsurance. There should be programs conducted to increase public awareness to people regarding insurance and reinsurance. We should educate people regarding advantages and disadvantages of insurance. Hope this re insurance company acquires success in future.