KATHMANDU, August 11: The Insurance Board (IB) has provided 10 companies with licenses to conduct reinsurance brokerage.
As of now, Nepali insurance companies have been purchasing reinsurance policies of foreign companies via India-based brokers. Citing an urgency of such brokers with a growing reinsurance business inside the country, the board has issued the licenses, according to the IB.
There are two reinsurance companies — Nepal Reinsurance Company and Himalayan Reinsurance Company – operating in the country at present. In July, the IB allowed the domestic companies to accept up to cent percent of the insured amount.
Raju Raman Poudel, executive director of the IB, said out of over a dozen applicants, 10 eligible applicants were issued the licenses. JB Boda Insurance and Reinsurance, Hub International, Alliant Reinsurance Brokers, Federal Reinsurance Brokers, Global Insurance and Reinsurance Brokers, Trust Insurance Brokers, STC Reinsurance Brokers and Subha Reinsurance Services and Aon Reinsurance are among the firms receiving the license.
Last year, the IB endorsed Reinsurance Broker Related Directive 2021. According to the rule, a reinsurance brokerage company needs to have a paid-up capital of Rs 50 million and an issued capital of Rs 100 million. The validity of the brokerage license is one year.