Insurance sector capital crucial for national development: FNCCI President Dhakal

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has emphasised the potential of insurance sector capital to drive national development and invigorate the economy.

Speaking at the second National Insurance Discourse jointly organised by Bankingsamachar and the Nepal Insurance Authority in Kathmandu today, FNCCI President Dhakal highlighted the vital role insurance can play in generating capital within the country.

He stressed the need for all sectors to be equally dynamic for the economy to thrive, suggesting that insurance capital should be channelled into production-oriented sectors. "The latest economic situation has shown that having sufficient liquidity in the bank alone won't make the economy dynamic. All sectors of the economy need to contribute equally and stay dynamic," Dhakal said.

He mentioned that the insurance sector has already created over 200,000 jobs, both directly and indirectly, and that its continued growth and expansion will generate even more employment opportunities.

He also urged the regulatory body to take steps to improve insurance premiums, addressing complaints about high premiums and issues with insurance payments. Dhakal suggested that the regulatory body would be more effective if companies were held responsible for their own practices rather than being micromanaged.

Highlighting the necessity of expanding insurance access, which currently reaches 44% of the population, Dhakal emphasised the importance of a public awareness campaign to educate people about the benefits of insurance and to broaden its scope.