Deputy CEO @ Nepal Life Insurance | Growth Strategy | Risk Management | Alternate Investments
The introduction of the Risk-Based Capital (RBC) framework marks a fundamental shift from static solvency margins to risk-sensitive standards, aligning our industry with international best practices. Key implications: 👉Solvency ratios have recalibrated from 295% to 228%, revealing the true risk positions of insurers. 👉Companies with lean capital must reinforce resilience; those with excess reserves must deploy capital more productively. 👉RBC elevates the focus from regulatory compliance to long-term stability, policyholder protection, and strategic growth. While challenges remain — from data and actuarial capacity to system readiness — this transition is an opportunity to strengthen governance, foster innovation, and enhance trust in the industry. RBC is more than a regulatory change. It is a pathway toward resilience, efficiency, and sustainable growth. Note: Please find the attached article for detailed reading.
PhD in Enterprise Risk Management, FIIB, New Delhi, India
1moIt is a very comprehensive article on risk based capital on Nepal insurance industry. Many congratulations Amit Kumar Keyal for putting up so much of research and coming up such an brilliant article.