— Narayan Babu Lohani, Chief Executive Officer, Reliable Nepal Life Insurance Limited
I began my first job as a high school math teacher after completing my SLC examination from Janakalyan Secondary School in 1988, Udipur, Lamjung district. I made use of my free time back then by teaching students. Later, I moved to Kathmandu for higher studies. After completing my Master’s in Engineering from Nepal Engineering College in 2000, I started my career as a management trainee (Technical) in a development bank.
After working at the bank for four months, I established M Tech Engineering Consultancy. We provided services such as valuations, insurance loss assessments and building designs, among others. I served as the Managing Director of the consultancy from 2000 to 2005. During this time, I also completed an Executive MBA and began working as the founding Chief Executive Officer of Reliable Finance Limited in 2006.
After seven years as CEO of Reliable Finance Ltd, we merged with a development bank and finance company, forming Reliable Development Bank, which operated until 2017. During this period, we applied to the Nepal Insurance Authority, formerly the Insurance Board, for licences for Reliable Nepal Life Insurance and Ajod Insurance. Reliable Nepal Life Insurance began operations in 2017, and I have served as its CEO since its inception.
From my experience, I believe passion, persistence and strong determination are essential in any profession. If we stay focused on our career goals, success will follow sooner or later.
Achieving a leadership role requires personality development, analytical and communication skills, networking and decision-making abilities, among other qualities. Strong willpower and determination, along with the ability to improve one’s shortcomings, are essential to reaching desired goals.
While working as a professional with a like-minded team, we envisioned establishing both life and non-life insurance companies, as well as a finance company. Consciously or unconsciously, I set a goal to become a future leader and began coordinating efforts to establish first a finance company and then an insurance company.
We set a clear goal and carried out all the groundwork to achieve it. Through M Tech Engineering, I built a network with professionals in the banking and insurance sectors while providing services to banks and insurance companies. We launched the finance company with an initial paid-up capital of Rs 3.5 crores, with aspirations for growth.
The financial sector has undergone significant transformation since I began working in this field, evolving from traditional banking to technology-driven systems. During this time, professionalism has excelled, compliance with regulations has become more stringent, technology adoption has increased, and corporate governance has been strengthened. In the formal economy, the financial sector is now the most transparent.
Comparing banking and insurance, both industries have their own strengths, and the nature of the business is quite similar. In banking, we collect deposits from depositors and lend to eligible borrowers. In life insurance, we collect premiums from policy sales, with our agency force handling collections. Insurance products are sold through various channels and the collected funds are invested directly and through banks. The core business principles are to focus on economies of scale, maintain cost-effectiveness and align the business with the latest trends.
Reliable Nepal Life Insurance Limited has completed seven years, during which we have built a strong foundation and provided services across the country. The company’s financial indicators are encouraging and we must now move towards launching customer-friendly products to minimise policy surrenders. Additionally, we are focusing on making sound investments to ensure better returns in the future. Enhancing the skills of our staff and agency forces is crucial, as is reducing operational costs by adopting digital technologies on a larger scale.
The insurance sector faces several challenges. The foremost challenge is the shortage of skilled human resources, particularly in marketing, as many prefer to work in back-office roles. Another challenge is over-competition, with some market players turning to mergers and acquisitions. However, company balance sheets show that unhealthy competition brings no benefit. In the meantime, micro-insurance licences have been issued and those companies are carving out their niche markets. One major challenge we face is the outbound migration of the youth population, who are the potential buyers of insurance policies.
Moreover, with the introduction of risk-based capital, companies are reassessing their capital size and their capacity to acquire business. Speaking of Reliable Nepal Life Insurance as a leader in the industry, our employees and agency forces are working diligently to drive growth. Our overall costs are well-managed and we are achieving healthy year-on-year growth. After seven years of operation, we stand at the industry average.
The insurance sector in Nepal is flourishing, offering ample opportunities for aspiring professionals. A career in insurance provides peace of mind and high job satisfaction. As a well-regulated industry, remuneration and personal growth are transparent, making it a rewarding choice for fresh graduates.
Regular evaluations based on key performance indicators ensure fair treatment and company growth. This sector encourages talented individuals to join without hesitation. While mergers and acquisitions may have limited opportunities for high-ranking staff in recent years, the expanding economy and financial sector will create more avenues for those who are passionate, dedicated and determined.
