KATHMANDU, Jan. 31 -- Nepali reinsurance companies will have to increase their paid-up capital to Rs 20 billion following a decision of the Nepal Insurance Authority (NIA) to increase the capital base of the reinsurers.

According to the NIA, the board meeting of the authority held on Wednesday decided to raise the minimum paid-up capital to double of the existing amount. As of now, the reinsurance companies need to maintain Rs 10 billion as their paid-up capital.

Currently, two reinsurance companies-Nepal Reinsurance Company (NRIC) and Himalayan Reinsurance Limited (HRL)-are operating in the country.

Targeting to stem massive capital outflows for insurance purposes, the government established the NRIC in November 2014. The Insurance Po...