Landmark Partnership: SALICO and DELCREDA Nepal Join Forces to Enhance Trade Credit Insurance in Nepal

BFIS News
2024 Jun Sun 21:58

Landmark Partnership: SALICO and DELCREDA Nepal Join Forces to Enhance Trade Credit Insurance in Nepal

Kathmandu, Nepal – In a groundbreaking move set to revolutionize the insurance and trade sectors in Nepal, Sagarmatha Lumbini Insurance Company Ltd (SALICO), a leading non-life insurance provider, has partnered with DELCREDA Nepal Pvt Ltd, a specialist in trade credit management and insurance. On June 18, 2024, both companies signed a significant Memorandum of Understanding (MoU) to develop and launch trade credit insurance products tailored specifically to the Nepalese market.

Signatories and Objectives

The MoU was signed by Roshan Kumar Pokharel, CEO of DELCREDA Nepal Pvt Ltd, and Chunky Chhetry, CEO of SALICO. The primary goals of this collaboration are multifaceted:

Regulatory Framework Development: Jointly assist the Nepal Insurance Authority in developing a comprehensive regulatory framework for trade credit insurance.

Business Education and Awareness: Conduct cost-based training programs to raise awareness and educate businesses about the benefits of trade credit insurance.

Tailored Policy Development: DELCREDA will support SALICO in creating customized trade credit insurance policies, providing IT solutions and ongoing operational support.

Benefits for Businesses

This strategic alliance promises substantial benefits for businesses in Nepal:

Risk Mitigation: Trade credit insurance will protect businesses against customer non-payment, ensuring uninterrupted cash flow.

Enhanced Credit Management: Businesses can offer more competitive credit terms to customers, strengthening trade relationships and expanding market reach.

Access to Financing: Insured receivables will be more attractive to banks and financial institutions, helping businesses secure better financing terms.

Stability and Growth: With protection against credit risks, businesses can confidently plan for long-term stability and growth.

Advantages for the Government

The government is also poised to benefit from this initiative:

Economic Stability: Promoting trade credit insurance will enhance economic stability by reducing the risk of business failures due to unpaid invoices.

Increased Tax Revenues: As businesses grow and thrive with trade credit insurance, the government will see increased tax revenues from heightened business activity and profitability.

Strengthened Financial Sector and Investment: Developing a robust trade credit insurance market will bolster Nepal's financial sector, attract investment, and spur economic development.

This landmark partnership between SALICO and DELCREDA Nepal represents a major advancement in the trade credit insurance landscape of Nepal. By leveraging their combined expertise and resources, the companies are set to create a more secure and dynamic business environment. This initiative is expected to drive economic growth and stability, benefiting businesses, the government, and the broader economy.