KATHMANDU: Foreign reinsurance brokers will now be required to establish an office in Nepal within one year of receiving a listing number from the Nepal Insurance Authority.
The authority introduced the provision through the fourth amendment to the Reinsurance Directive, 2080 (2023).
Under the revised rules, a foreign reinsurance broker that obtains a listing number from the authority must set up a branch office, liaison office, or a jointly invested office in Nepal within one year.
Previously, foreign reinsurance brokers had been conducting business in Nepal mainly through appointed representatives. The authority said the new time limit was introduced to end that practice and strengthen regulatory oversight.
The amendment also requires insurance business to be conducted with domestic reinsurers, domestic reinsurance brokers, and foreign reinsurers and reinsurance brokers that have obtained listing numbers from the Nepal Insurance Authority.
