Insurance firms are failing to build confidence; a merger is required: Silwal, Chairman

By Karuna Thapa

Kathmandu, March 7

Surya Prasad Silwal, Chairman of the Insurance Committee, has emphasized the necessity for insurance firms to consolidate. Chairman Silwal stated this during an IME General Insurance public product launch event held in the capital on Monday.

Despite a growth in the number of businesses operating in the life and non-life insurance
sectors, Silwal claims that the industry has not been able to develop qualitatively. ”It’s just an issue of numbers,” he remarked of the number of insurance businesses now in existence. There is no need to obtain a new license. ”However, no one has enough money,” Silwal explained. It has become necessary to combine as a result of this.

Despite having a large number of insurance firms, Chairman Silwal said that the company had not been able to extend the projected territory and services. ”Our insurance businesses are not poor in terms of numbers. However, they are woefully lacking in terms of service and access growth. The committee will not be able to look at this and distribute misinformation in all locations all at once. Even with the committee’s limited resources, spreading insurance knowledge to the broader population is impossible. Companies must go to lower levels to do this, as well as raise insurance knowledge. Insurance firms must collaborate with local people’s representatives to achieve this,” Silwal explained.

However, he claimed that the general public’s dislike of insurance stemmed from insurance firms’ bad behavior. The public has lost trust in insurance, according to Chairman Silwal, due to the habit of not providing clear explanations about the insurance policy and not paying on time.

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