(To be implemented with the Regulatory consent)

ICRA Nepal’s Claims Paying Ability Ratings (CPRs) for insurance companies are ICRA Nepal’s opinion on the ability of the insurers concerned to honour policyholder claims and obligations on time. In other words, a CPR is ICRA Nepal’s opinion on the financial strength of the insurer, from a policyholder’s perspective. Following deregulation, a paradigm shift is expected in the domestic insurance sector as newer players and products enter the market. Given this scenario, ICRA Nepal expects its CPRs to be an important input influencing the consumer’s choice of insurance companies and products. ICRA Nepal’s Rating process involves analysis of an insurer’s business fundamentals and its competitive position, and focuses primarily on the insurer’s franchise value, its management, organizational structure/ownership, and underwriting and investment strategies. Besides, the analysis includes assessment of an insurance company’s profitability, liquidity, operating and financial leverage, capital adequacy, and asset/liability management method.