Despite the growing number of insurance companies in Nepal, the sector remains heavily dependent on foreign actuaries for the valuation of assets and liabilities. This reliance stems from the absence of a national licensing body for actuaries and the migration of the few qualified Nepali professionals to other countries.
As a result, Nepali insurance companies continue to outsource actuarial services abroad, leading to an estimated annual outflow of around Rs 50 million.
Sushil Dev Subedi, Executive Director and Spokesperson for the Nepal Insurance Authority (NIA), confirmed the shortage of qualified actuarial professionals in the country. “Currently, only one licensed actuary resides in Nepal,” he said. “Due to the lack of skilled manpower, insurance companies are compelled to hire actuaries from countries such as India, Pakistan, Sri Lanka, and Hong Kong.”
Currently, 37 insurance companies are operating in Nepal, comprising 14 life insurers, 14 non-life insurers, 2 reinsurers, 4 micro-life insurers, and 3 micro non-life insurers. While the number of companies and their business volume has increased, the supply of actuarial professionals has failed to keep pace.
Even the regulatory body itself, the NIA, has been compelled to procure actuarial consulting services from abroad. Until last year, Preksha Mathema was the only actuary based in Nepal appointed by NIA. This year, the authority has hired two Indian nationals—Subramaniam and Gopal Kumar—for the role.
In an effort to address the talent gap, NIA has signed an agreement with the School of Mathematical Sciences at Tribhuvan University. Under the partnership, NIA is offering scholarships to two students enrolled in the Bachelor of Mathematical Sciences program, which includes a specialization in actuarial science.
However, Keshav Raj Phulara, Program Coordinator at the School of Mathematical Sciences, noted that graduates are not staying in Nepal. “There is greater exposure and higher earning potential abroad,” he said. “As a result, we have not been able to meet the domestic demand for actuarial professionals.”
Nepal lacks a national authority to certify actuaries, so Nepali students often pursue credentials from professional bodies in India, the UK, or the US. In addition to better pay, international insurance firms offer internships and financial support, which further attract aspiring actuaries.
To help retain local talent, NIA has instructed each insurance company to employ at least two actuarial analysts. “This initiative will create job opportunities for Nepali students,” Subedi explained. “After conducting basic analyses, companies can have the results validated by a certified actuary, which will also reduce costs.”
According to the Insurance Act, 2022, all insurers are required to assess their financial position, including assets and liabilities, through a certified actuary approved by NIA. The actuary’s report must be submitted to the authority.
Similarly, the Insurance Regulations, 2024, mandate that actuarial valuation must be conducted at least once every fiscal year. Under the earlier Insurance Act of 1992, such valuations were required only once every three years. However, a directive issued by the then Insurance Board in 2014 made annual actuarial valuation mandatory.
As per the directive, insurers must complete their actuarial valuation and submit the report within four months after the end of each fiscal year. The cost per valuation typically ranges from Rs 1 million to Rs 1.5 million per company.
