By A Staff Reporter

Kathmandu, May 15: Minister for Finance Dr. Yuba Raj Khatiwada Thursday said that the Insurance Board (IB) should focus on rapid expansion of insurance services.
Speaking at a webinar organised by the IB on its 52nd Anniversary, he said that although insurance service had seen an impressing expansion in recent year, only 22 per cent people have access to the facility therefore effective role of IB was expected.
He pointed towards the implementation of innovative insurance ideas developed in the international market to make the sector more dynamic.
FM Dr. Khatiwada informed that the Insurance Authority Act would be ratified by the parliament soon which will facilitate in the regulation and expansion of business.
“There is a need for giving priority to agriculture, micro and mobile insurance products. If the present companies cannot provide the business and facilities needed to people, the IB should think about adding more insurers,” he said.
According to him, there was a possibility of opening licenses of new insurance and reinsurance companies and the reinsurance company must expand its base.
“Insurance is not like a grocery shop where you open an outlet and wait for the customers, you have to reach out to the potential markets and customers, else the government will be forced to launch new companies with the support from the private sector,” he said.
Dr. Khatiwada directed the insurance sector regulator to give priority to micro-insurance and enhance the regulatory capacity. He said that it was the time to promote agriculture and livestock insurance.
Chairman of the IB Chiranjibi Chapagain said that the previous year had been an important period in terms of policy and legal reforms that led to the development and modernisation of market.
He said that the insurance has reached 27 per cent people including the term insurance for foreign employment.