News of Insurance – Nirajan Kandel, Deputy CEO of Sanima Reliance Life Insurance Company Ltd., has stated that Nepal’s insurance sector is currently in the digitization phase rather than full digital transformation. Speaking at the third session of the Second National Insurance Discourse, jointly organized by Banking News and Nepal Insurance Authority, he emphasized the need for further technological advancement in the sector.

“Digitization and digitalization are two different things. Insurance companies are currently scanning documents and digitizing records. Similarly, hospitals storing patient data in online formats is also digitization. This forms the foundation for digitalization,” Kandel explained.

According to him, Nepal’s insurance companies are still focused on converting data into digital formats, while true digitalization involves integrating AI, machine learning, blockchain, and robotics into operations. Full automation of services will mark the real shift to digitalization.

Kandel highlighted the lack of investment in Insurtech, despite Nepal having already undergone a Fintech revolution. “If you have a startup mindset, there is a huge opportunity here. Fintech has already transformed, thanks to companies like F1Soft, but Insurtech remains untapped,” he said.

He further noted that insurance companies alone cannot drive Insurtech investment. Comparing Nepal’s current situation to India in 2008, he emphasized that this presents a prime opportunity for investors to step in.

Additionally, Kandel stressed the need for telematics technology in Nepal’s insurance sector. “India adopted this technology long ago, but Nepal has yet to embrace it. Telematics can help insurers differentiate between safe and reckless drivers, setting premiums based on risk factors. Nepal’s insurance companies should adopt this technology soon,” he urged.