News of Insurance — The practice of “forced selling” has become increasingly prevalent in Nepal’s insurance sector, causing widespread concern among consumers. Insurance agents are reportedly pressuring individuals into purchasing policies without properly explaining their terms, contributing to a growing negative image of the industry.

This aggressive sales tactic—pushing customers to buy policies they neither need nor fully understand—has drawn criticism from industry experts and the public alike. The blame largely falls on life insurance agents, whose pushy methods are undermining the integrity of the profession.

Despite mounting complaints, the Insurance Board of Nepal (Beema Pradhikaran) has been accused of turning a blind eye. Analysts argue that the root of the issue lies in lax regulatory oversight and the overly aggressive sales targets set by insurance companies. Insurance expert Rabindra Ghimire warned that such practices could damage public trust in the industry over the long term.

Many customers have reported receiving repeated phone calls and messages urging them to buy insurance policies—often without their consent or interest. “Even after I said I didn’t need insurance, I kept getting calls and texts. It becomes frustrating,” one individual told Banking News on the condition of anonymity.

The pressure on agents to meet sales quotas seems to be at the core of this issue. Agents receive monetary incentives for each policy sold, leading many to prioritize their commissions over the genuine needs of clients. Unfortunately, this short-term sales-driven approach is leading to long-term damage, including a rise in policy cancellations.

Even skilled and professional agents are being affected by the backlash against forced selling, as the unethical behavior of a few damages the reputation of the entire field. Though the Insurance Board claims it is aware of the issue and has promised stricter regulation, concrete action is yet to be seen.

Customers and experts are calling for greater transparency and proactive regulation. Without decisive intervention, the reputation of the insurance industry may continue to deteriorate, and public trust could erode further.

Poojan Dhungel, Director at the Insurance Board, acknowledged that agents must reach out to clients to sell policies but emphasized the importance of not mistaking communication for coercion. “Not all agents are unethical. Many are working hard to expand insurance access responsibly,” she said.

Vishnu Sapkota, Regional Manager at Citizens Life Insurance, echoed the sentiment, stating that dedicated agents are contributing positively to the sector despite the challenges.

Rise in Policy Surrenders Raises Alarms

The consequences of forced selling are already becoming evident. According to data from the Insurance Board, policy surrenders have seen a sharp rise. By the end of February in the current fiscal year 2081/82, approximately NPR 9.87 billion worth of life insurance policies had been surrendered.

A total of 71,554 policies have been prematurely cancelled, a troubling sign that many customers may not have fully understood their purchases. Experts believe that such cancellations could be linked to inadequate information and the pressure of forced selling.

Unless addressed, these issues may significantly harm the credibility and growth of Nepal’s insurance market.