Corporate News

Kathmandu, March 31, The Insurance Board has expressed concerns about the lapse ratio of insurance policies sold by the life insurers in the country.

At up to 27 per cent, the lapse ratio is quite high in Nepal. Often times the insured have been allowing their policy to lapse because the insurance agent did not properly explain the terms and conditions of the policy, lack of understanding, insurance policy was bought without regular income source and shocks in income source, and lack of proper follow-up, among others.

In this regard, the Insurance Board has instructed the companies to rectify the situation as high lapse ratio is hampering the objective of expanding insurance penetration among the people.

Chiranjibi Chapagain, chairman of Insurance Board, said the insurance sector regulator has urged the firms to reduce the lapse ratio to below five per cent within two to three years. “The lapse ratio in insurance companies varies from between seven per cent to 27 per cent,” said Chapagain, adding, “As new players have also entered the market, we have asked them to ensure low lapse ratio.” The lapse ratio measures the amount of insurance policy renewals with respect to the total number of insurance policies at the beginning of a specified period.

In the context of insurance penetration finally reaching double digits — 10 per cent in the last one-and-a-half years from seven per cent, the insurance sector regulator believes that the reduction in lapse ratio will make insurance schemes effective in the country.

Chapagain further said that insurance schemes are not effectively expanded as a high number of population falls under low-income group, there is lack of proper awareness, while insurance companies continue to be urban-centric. “But, with their increased paid-up capital and new players in the market, we expect that the insurers will be compelled to expand their services across the country.”

Source: The Himalayan Times

Corporate News

Letter of Credit to be made mandatory for trade with India, China

KATHMANDU, April 18: Nepali traders will have to start using banking channel for making or receiving payments from traders in China and India very soon.

Read more ...

Trade experts debate fourth industrial revolution

Kathmandu, April 3, As the world has been witnessing the fourth industrial revolution, which is largely related with artificial intelligence and the internet of things, this progress could bring transformative changes in the economic development of the least developed countries (LDCs) if they are able to access advanced technologies.

Read more ...

Banks have three days to submit plan to reach all unbanked units

KATHMANDU, March 22: Nepal Rastra Bank (NRB) has told commercial banks to come up within three days commitment to open branch offices in 116 local units where they have become reluctant to expand their presence so far.

Read more ...

Bank deposits growing at almost half the rate of loan expansion

Kathmandu, January 11 - Bankers seem to have largely ignored the credit crunch situation of the last fiscal, as credit expansion of banks is almost double than deposit collection in the first five months of the current fiscal.

Read more ...
Symbol % Change Last Price Turnover
SAEF 11.1111 10.0 39,544.0
PROFL 9.9338 166.0 355,870.0
KKHC 8.4615 141.0 140,908.0
JSLBB 8.2143 3,030.0 753,798.0
RBSPO 8.1523 12,245.0 29,216,261.0
Symbol % Change Last Price Turnover
UMB -100.0000 0.0 6,800.0
SBBLJ -7.2072 206.0 895,272.0
MLBBL -5.7118 1,106.0 136,020.0
SLICL -5.2767 736.0 9,592,666.0
CFCL -4.6875 122.0 605,968.0
Symbol % Change Last Price Turnover
CHCL 1.0514 865.0 42,303,702.0
NBL 3.4682 358.0 39,989,032.0
SHPC 6.9252 386.0 37,807,086.0
SANIMA 0.5420 371.0 31,457,127.0
KBL 0.7463 270.0 30,742,675.0