I began my career at Nepal Rastra Bank (NRB) as an assistant in 1986. I was fortunate to have the opportunity to pursue higher education (Chartered Accountancy) in Chennai, India. Upon completing my studies, I returned to NRB. My tenure at the central bank spanned various departments, including the Non-Banking Supervision Department (now known as the Development Bank and Finance Company Supervision Department), the Bank Supervision Department, and the Regulation Department.
During my time at NRB, I was involved in the revival of several financial institutions that were taken over by the bank due to poor governance. I also participated in the merger and acquisition of financial institutions, their consolidation, capital increment initiatives, and the drafting of the Bank and Financial Institutions Bill, among other significant projects. I retired from the bank as an Executive Director after a distinguished service of three decades.
As a Chartered Accountant, I had numerous career options, including pursuing opportunities in the private sector or establishing my own firm. With the burgeoning growth of banks and financial institutions (BFIs), I also received offers to serve at senior management levels within these organisations. At times, I even considered emigrating to developed countries.
Ultimately, I decided that I had a responsibility to contribute to my nation, acknowledging the investment made in my higher education. Born into a low-income family in Syangja, my family was unable to afford my education, an opportunity that was provided to me by Nepal Rastra Bank.
I arrived in Kathmandu to pursue higher education, with limited knowledge about Chartered Accountancy (CA) and its educational path. During my college days at Shankar Dev Campus, the importance of CA education became evident. I began exploring opportunities to study CA and discovered that Nepal Rastra Bank offered such programmes.
Meeting the eligibility criteria with my B.Com marks, I submitted an application to NRB for the CA programme, which was subsequently accepted. However, securing approval came with a commitment: to serve the central bank for a minimum of five years after completing the programme. Failure to do so would require repayment of the invested amount with accrued interest.
Upon qualifying as a CA, I encountered numerous opportunities in the market. However, the most significant challenge for CAs lies in upholding the profession’s dignity and integrity. Any deviation from these principles can tarnish the reputation of the entire sector.
Following my retirement from the central bank in 2016, I transitioned to the private sector, focusing primarily on the insurance industry. My role involved policymaking and regulation. During my tenure, we implemented crucial policies to regulate the financial sector and build public trust. While initially unsure about returning to work after retirement, I considered becoming a practitioner. However, my colleagues from the central bank encouraged me to pursue a career in insurance, a completely new field for me.
After joining the insurance company, I recognised the paramount importance of effective management for achieving efficiency, effectiveness and overall organisational robustness. While theoretical frameworks emphasise the significance of system development and governance, successful implementation hinges on practical application.
We operate within a framework of regulatory compliance and adhere to the guidance of the Board of Directors. Establishing robust internal controls, fostering strong interdepartmental coordination, and cultivating a customer-centric approach are crucial for success. Ultimately, the company’s strength and public trust depend on customer satisfaction.
Effective management requires a deep understanding of the business’s nature, the flow of transactions, and the dynamics of operational activities. Practical experience in the field is essential for honing managerial skills. In essence, successful management encompasses a multifaceted approach: prioritising customer satisfaction, driving business growth, ensuring returns for shareholders, providing competitive compensation and incentives for employees, fulfilling tax obligations, and earning a positive reputation within society.
The insurance sector has witnessed significant growth over time. However, with an insurance penetration rate of only 44%, immense untapped potential remains. Regulatory advancements, particularly the transformation of the Insurance Board into the Nepal Insurance Authority, have contributed to this growth. The geographical reach of insurance companies has expanded, leading to increased tax contributions to the government. Moreover, life insurance companies have demonstrated a remarkable capacity to mobilise long-term funds, reaching nearly Rs. 700 billion. However, a dearth of suitable investment instruments hinders the optimal utilisation of these funds. The government could address this by issuing development bonds to channel these funds towards infrastructure development and enhance the productive capacity of the economy.
Conversely, a significant portion of the population remains underserved by insurance. To address this, the government should implement policies aimed at increasing accessibility and awareness among the underinsured population. This may involve providing income tax exemptions to encourage insurance purchases and offering grants to economically disadvantaged individuals to facilitate their entry into the insurance net.
The competitive landscape within the insurance industry presents challenges such as misselling and an increased lapse ratio due to inadequate consumer information. The regulator’s recent introduction of microinsurance initiatives is a positive step towards providing coverage at the grassroots level. However, it is crucial to ensure that these microinsurance programmes are operating effectively to achieve their intended objectives.
Another critical challenge facing the sector is a shortage of skilled talent. I believe the insurance sector offers promising career opportunities for recent graduates. These institutions operate within a well-regulated environment, necessitating rigorous internal and external audits, inspections from regulatory bodies, and comprehensive on-site and off-site supervision. This emphasis on transparency fosters a conducive environment for young professionals to thrive and advance their careers.
Within the insurance sector, employment opportunities primarily fall into two categories: marketing/front-office roles and back-office/support roles. Individuals should carefully consider their preferences and aptitudes when choosing between these two paths. While marketing roles present unique challenges and opportunities, they generally offer greater potential for career growth for high-performing individuals compared to back-office positions.
The infusion of young talent is crucial for the rapid growth and development of the insurance sector. Furthermore, I consistently emphasise to young professionals, including members of my team, the paramount importance of dedicated work ethic. Honest and diligent work yields significant rewards throughout one’s life. I have never been driven by ambitious aspirations; instead, I focused on diligently performing my duties, which ultimately led me to achieve the pinnacle of my professional journey through my own efforts.
