Nepal Insurance Authority to Form Study Task Force to Resolve Agent Incentive Dispute
The Nepal Insurance Authority is set to form a study task force to resolve the dispute arising from the 18 percent incentive provision in the Insurance Regulation 2081. The task force will include representatives from the Authority, the Life Insurers Association, and the Insurance Agents Association.
Kathmandu. The Nepal Insurance Authority is going to form a study task force to resolve the confusion and dispute created in the insurance sector by the provision related to the 18 percent incentive (promotional amount) mentioned in the Insurance Regulation 2081.
After the regulation set a limit on incentives per agent, stakeholders have been continuously expressing dissatisfaction, saying that it would put the business of insurance companies and the profession of insurance agents at risk. The task force to be formed to address the concerns of insurers and agents will include representatives from the Nepal Insurance Authority, the Life Insurers Association, and the Insurance Agents Association.
Based on the practical suggestions submitted by the task force, the board of directors of the Insurance Authority will facilitate the implementation of the provisions of the Insurance Regulation 2081. The Authority has also stated that a long-term solution to the problem will be sought by taking policy initiatives as needed.