Global insurers warn Nepal about damaging protectionist rules
4 January 2022
GFIA has published a letter to the Nepalese Insurance Board where it warns against rules that would require cedants to offer first preference to domestic Nepalese reinsurance companies.
Reinsurance localisation yields no identifiable prudential benefit, while also violating the International Association of Insurance Supervisors’ Insurance Core Principles. Furthermore, there are multiple examples of reinsurance localisation leading to consumer, taxpayer and overall economic harm.
GFIA offered to engage with the Nepalese authorities to find prudential solutions that would better facilitate the growth and development of the local industry and protect Nepalese citizens.
