On November 25, the board directed both life and non-life insurance companies to purchase reinsurance policies from only domestic companies. The provision had bound insurance companies to reinsurance their risk from only domestic reinsurance companies. The provision had allowed the companies to transfer risks to foreign companies only if the domestic companies deny to bear risks.
The guideline which was implemented immediately after the arrival of Himalayan Re, a new reinsurance company scored criticism from all corners citing political corruption.
As per the board, it revised the provision on December 2, however, the revised guidelines has been published on the official website of IB on January 6.
Raju Raman Poudel, Executive Director of IB informed of the first amendment in the reinsurance guidelines.
“The board has amended provisions regarding ratings and retrocession in the reinsurance guidelines,” said Poudel. He rebuked the amendment in the provision of 100 percent reinsurance from domestic reinsurance companies.
The previously issued guideline clearly mentioned the provision of 100 percent reinsurance from domestic companies. However, the provision has been erased not only from amended version of the guideline but also from the first issued copy of the directive.
