Nepal Insurance Authority Suspends Himalayan Re’s New Business Operations
The Nepal Insurance Authority (NIA) has issued a directive prohibiting Himalayan Reinsurance Limited from underwriting new business until the end of the current fiscal year, following an ongoing investigation into alleged financial irregularities.
Himalayan Reinsurance Limited is facing a major operational setback after the Nepal Insurance Authority (NIA) ordered a suspension of its new business activities effective through the end of the current fiscal year (Ashar 2083). The regulator’s decision follows a series of investigations into suspected financial irregularities involving the company’s management. While the suspension prevents the company from taking on new risks, the NIA has prioritized policyholder interests by allowing the firm to continue fulfilling its current liabilities. Consequently, Himalayan Re will proceed with outstanding claim settlements and specific retrocession tasks for previous business, ensuring that the suspension does not cause systemic disruption to the insurance market.