KATHMANDU, May 4: Nine insurance companies have failed to raise their paid-up capital even three years after the deadline set by the Nepal Insurance Authority (NIA), violating regulatory requirements.
According to the NIA, nine out of 37 insurers currently in operation—including two reinsurance companies, three micro-insurers, three non-life insurers and one life insurer—have yet to meet the minimum capital thresholds.
The non-compliant firms include state-owned Rastriya Beema Company and Rastriya Jeevan Beema Company, along with private non-life insurers Prabhu Insurance and Sanima GIC Insurance.
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Among micro-insurers, Liberty Micro Insurance, Star Micro Insurance and Trust Micro Insurance have not met the requirements. Reinsurers Nepal Reinsurance Company and Himalayan Reinsurance Limited also remain below the mandated capital level.
The NIA had directed life insurers to increase their paid-up capital to Rs 5 billion from Rs 2 billion, and non-life insurers to Rs 2.5 billion from Rs 1 billion. Reinsurers were required to raise their capital to Rs 20 billion by mid-February 2025, while micro-insurers were asked to maintain Rs 750 million in paid-up capital, including at least 30 percent public shareholding.
In April 2022, the regulator instructed insurers to either raise capital or pursue mergers, initially giving them 30 days to submit capital enhancement plans. It later set a deadline of mid-April 2023 for compliance.
However, nine insurers have yet to meet the requirements even three years after the deadline.
Data from the regulator show that Rastriya Beema Company and Rastriya Jeevan Beema Company have working capitals of Rs 266.63 million and Rs 181.02 million, respectively.
Among reinsurers, Nepal Reinsurance Company has a paid-up capital of Rs 13.42 billion, while Himalayan Reinsurance stands at Rs 10.86 billion—both below the Rs 20 billion threshold. Prabhu Insurance has a paid-up capital of Rs 1.70 billion and Sanima GIC Insurance Rs 2.15 billion, against the required Rs 2.5 billion.
Through the policy, the NIA has pushed insurers to strengthen their capital base or opt for mergers. However, the regulator has yet to set a fresh deadline for companies that continue to fall short of the requirements.
