Insurance Board directs insurance firms to invest in agro and infrastructure sectors
The Insurance Board has directed insurance companies to make mandatory investments in the infrastructure and agricultural sectors of the country. According to the Board, it has sent letters to insurance companies to compulsorily invest in agriculture, water resources, tourism and infrastructure sectors because the companies seem to be focusing on commercial banks to earn interest on time or investing only in the stock market. According to the Board, insurance companies have to invest in eight different sectors as per the provision in ‘Insurers Investment Directive 2019’. According to the investment guidelines, insurance companies should invest 20% of the amount deposited in the insurance fund in agriculture, water resources, tourism and infrastructure. There are 19 life insurance companies and 20 non-life insurance companies operating in Nepal. But so far only a handful of them have invested in agriculture, water resources, tourism and infrastructure.