9 August 2023
GFIA has written to the Nepal Insurance Authority to express its concerns about the new Reinsurance Directive 2080 (2023), which introduces a restrictive provision that requires all life reinsurance business (after retention) to be provided by domestic reinsurers.
Open reinsurance markets are vital to enable efficient operations, to diversify risk globally and to promote continued growth of global and national economies. Full access to international capital and cross-border reinsurance has tangible benefits for any local insurance industry, consumers and the wider economy.
GFIA therefore calls on the Nepal Insurance Authority for an open discussion about the forced reinsurance localisation introduced in the new Directive and about potential other more prudential options that would better facilitate the growth and development of the industry and protect Nepalese citizens.