News of Insurance – Pravin Raman Parajuli, the Chief Executive Officer (CEO) of Nepal Life Insurance, has stated that insurance companies are in a race to become digital. Speaking at the third session of the “National Insurance Discourse 2025,” he noted that insurance companies are shifting from traditional physical services to digital platforms.

During the session titled “The Rise of Technology in Insurance: Challenges and Opportunities,” CEO Parajuli acknowledged that while companies are advancing in technology adoption, not all are at the same level. “Not all companies have fully embraced advanced technology. Some are still in the process of digital transformation,” he said. “However, many are adopting new technologies to move towards a paperless policy system.”

He emphasized that in the future, insurance companies will increasingly adopt robotic processes and automation. Many companies have already started integrating robotic processes for service delivery. Nepal Life, for instance, aims to achieve maximum technological adoption within the next two to three years. Across the industry, companies are actively preparing to enhance service delivery through advanced technologies.

Parajuli highlighted that customers can now receive claim payments without visiting insurance branches or offices, showcasing significant progress in digitalization. “While companies may not have reached full automation yet, digitalization is already in effect. However, some traditional processes still remain,” he said. “Compared to the past, insurance companies have made significant strides in adopting technology.”

Furthermore, he stressed that there is no alternative but to advance in AI, machine learning, blockchain, and robotic processes. “The transition to AI will take time depending on the readiness of each company,” he noted. Currently, Nepal’s overall literacy rate is 77%, but digital literacy stands at only 31%, highlighting a significant gap.

Parajuli also pointed out that insurance companies need to clearly define which services should be digitalized. “While digitalization reduces costs, it also increases risks. However, if implemented correctly, reduced costs can benefit customers,” he explained. He urged companies to develop a comprehensive digital strategy and make necessary investments to maximize returns from digitalization.