News of Insurance – Himalayan Reinsurance CEO Upasana Poudel has stated that the government cannot sustain the reinsurance sector by providing subsidies. Speaking at the fourth session of the 2nd National Insurance Discourse 2025, which focused on expanding the boundaries of Nepal’s reinsurance market and fostering innovation in business growth, she emphasized that subsidizing reinsurance would be equivalent to running the entire economy on subsidies.

“Reinsurance is a business that takes on risks beyond a company’s individual capacity,” she said. “If reinsurance is run on subsidies, the entire ecosystem will become unsustainable.” She further highlighted that the reinsurance sector contributes significantly to both the internal and external aspects of the economy and noted its increasing involvement in international trade.

CEO Poudel also pointed out that the adoption of digital solutions should not be dictated by a fixed timeline but rather be driven by the impact of ongoing efforts. She expressed skepticism about the necessity of a third reinsurance company in Nepal, stating that the existing companies must enhance their roles to sustain the market.

“We have seen numerous circulars, but their implementation has been lacking. Now, we need to focus on skill development,” she stated. “Additionally, we must pay close attention to technological advancements to ensure the sector’s growth and sustainability.”