Hilton Reinsurance Dispute: Four Companies Asked for Formal Clarification

The dispute related to the reinsurance management of the Hilton Hotel has taken a new turn. After the regulatory authority formally sought clarification from four companies involved in the case, the insurance sector has once again come under public scrutiny.

Nepal Insurance Authority has sent official letters directing Oriental Insurance Company, Nepal Reinsurance Company, Himalayan Reinsurance Company, and Alient Reinsurance Broker to submit written explanations. According to sources, the regulator has initiated the investigation due to suspected legal and technical irregularities in the reinsurance agreement and related procedures.

Earlier, an investigation committee formed by the authority had recommended action against the concerned companies as far back as last Mangsir. However, the decision-making process was delayed due to vacant positions on the board, which prevented the formation of the required quorum. As a result, the implementation of the investigation report was postponed.

After the Ministry of Finance appointed Chandrakala Poudel as Chairperson and Dr. Ganesh Prasad Pandey as Insurance Expert Member on 13 Magh, the board became complete. With the quorum fulfilled, the stalled decision-making process resumed, and the authority began formally implementing the recommendations of the investigation committee.

The committee had proposed initiating action in accordance with Sections 134 and 138 of the Insurance Act, 2079. Based on this legal provision, the authority has sought clarification from the concerned companies as a first step. According to an official of Himalayan Reinsurance, the company received the letter last week and is currently preparing its response along with the necessary documents.

Experts in the insurance sector believe that this case has raised serious questions about transparency in reinsurance transactions, risk assessment practices, and regulatory oversight mechanisms. They say that the authority’s upcoming decision is expected to have a direct impact on the credibility and trustworthiness of Nepal’s insurance and reinsurance industry.