April 29, 2021 | Investopaper
The Insurance Board has called for a proposal to establish a new reinsurance company. The Board issued a notice on Thursday calling for a proposal for a reinsurance company, stating that it is necessary to make the reinsurance business more competitive, effective and efficient.
At present, only Nepal Reinsurance Company is operating as a reinsurance company. Preparations are also underway to operate several reinsurance companies namely Kathmandu Re, Annapurna Re, Prudential Re from the private sector. There is a big possibility that one of them will get permission to operate.
The minimum paid-up capital for a new reinsurance company should be Rs 10 billion. Similarly, the proposal from the promoters with cross-holding in Nepal Reinsurance will also be invalid.
The Board has requested the interested individuals or organizations to submit the sealed proposal within 21 days of the publication of the notice. Out of the proposals received, only one company will receive the license to operate on basis of the evaluation prepared by the Board.