Dearth of actuaries makes Nepal dependent on India for insurance services | Khabarhub

NRs 80 million in a year exiting from Nepal, lack of skilled manpower back home, continues Khabarhub.

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Due to the absence of training and teaching in ‘actuarial science’, Nepal is left with no option other than being dependent upon the services provided by India in this field mostly used by the insurance companies — both general and life insurances.

Actuarial science is a complex discipline which employs mathematical methods and skills of statistics to assess risk in insurance, finance, and other such industries and organizations. It involves expertise in order to venture ‘asset to liability’ analysis used by financial and insurance companies so that they manage to have the funds to pay required liabilities in events of exigencies and emergencies. For example, actuarial analysis is needed in devising insurance and retirement investment products.

Since Nepal does not have a pool of such skilled manpower with possessing professional competence in actuarial science, insurance companies of Nepal are dependent upon the services provided by Indian actuaries.

An actuary is a business professional trained in analyzing the financial consequences of risk. Actuaries use concepts, theories and perspectives derived from mathematics, statistics, and finance to study uncertain future events, particularly those which relate to insurance and pension programs. Actuaries undergo rigorous training to acquire competence by passing several levels of professional examinations. Since Nepal does not have a pool of such skilled manpower with possessing professional competence in actuarial science, insurance companies of Nepal are dependent upon the services provided by Indian actuaries...

Raj Raman Poudel, Joint Director of Nepal Insurance Board, confirmed that there is a long tradition of getting services from Indian actuaries for insurance companies in Nepal including the famous Life Insurance Company (LIC). As Nepal does not have a higher level of skills in actuarial science, Indian actuaries, employed in a range of Indian companies, come forward to lend their services to Nepalese Insurance companies, explains Raj Raman Poudel. He suggests, “It is required of Nepalese universities to introduce the academic course of actuarial science without delay and call back Nepalese actuaries working abroad particularly in India to impart this skill to Nepalese youth.”
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Source: Khabarhub