Impact of Corporate Governance to the General Insurance Industry: Lessons from selected insurance companies in Nepal

Abstract

Every institution whether it is a public or private, and big or small should adopt effective governance system for its survival and development. Low level of performance in the institution often occurs due to weak governance. In this context this article discusses to what extent the corporate governance impact performance of the institution like insurance companies. The article aims to examine the application of corporate governance practices in insurance industries in Nepal. For generating information four major insurance companies such as NECO Insurance, Sagarmatha Insurance, Rastriya Beema, and Shikhar Insurance companies were taken employing both quantitative and qualitative data. The findings reveal that corporate governance has a strong influence on the performance of general insurance industry in Nepal provided effective board oversight to maintain accountability and efficient regulatory compliance along with maintaining stable financial performance are important.