As the first foreign company to be granted an insurance licence in Nepal, MetLife is one of the leading insurers in the country, providing attractive insurance protection and benefits at a competitive price. The Himalayan Times caught up with Elena Butarova, senior vice-president and head of Bangladesh, Malaysia, Nepal, and Vietnam at MetLife, to gain her insights on prospects and challenges in the insurance sector, impact of COVID, among other issues. Excerpts:

What are the challenges and skope for insurance business based on your extensive experience of holding various positions in MetLife in Europe, Middle East and Asia?

There are challenges in every market.

The Nepali market also has its own set of challenges and similarities. The COV- ID-19 pandemic did bring a lot of problems to markets around the world as there were many areas which were not given proper attention prior to it.

In the insurance sector, interpersonal communication is very important, however the pandemic did not allow that.

However, MetLife as a company moved ahead with adopting digitisation even before the pandemic. In the next strategic phase for the company's growth, adopting digitisation was very important for us.

We had introduced some digital tools for our agents, service oriented digital platforms for our customers and associates.

We also introduced online claim service applications which helped the company to survive and continue operations during the pandemic. We also use digital tools like e-learning platforms which allows us to provide training to new people through virtual processes. The online tools helped us to stay connected and manage our manpower. So to say, the pandemic also helped us to adapt and further develop our digitisation aspect.

The second challenge is maintaining sustainability. We are following the principles of sustainability in MetLife globally and in Nepal as well. For us, sustainability means to have a seamless experience with the customers and taking care of the environment by promoting paperless processes through digital platforms.

In some countries we made more progress in sustainability reporting standards.

For example, Malaysia and India are converging to environmental, social and governance (ESG) reporting standards as well. The nature of the insurance sector is creating a more secure and protective future which corresponds and resonates with sustainability.

What is your observation of the activities and performance of MetLife Nepal after meeting the staff and agents here?Are there any new sectors that MetLife Nepal could foray into?

I recently had the opportunity to meet the managers. At our agency awards night, I had the chance to meet more than 700 best performers, along with sales executives who support our agency to grow.

I believe it is more important how you serve than how you sell and I see that our agents and service providers are confident in quality services which has also made me confident that we have a very strong team of agents and managers in Nepal.

We are very customer-centric. When talking about sales, we are not just looking toward selling our services but are focused toward need-based selling so that the customer can get insurance protection and saving opportunities according to his/her needs. We are also working on different solutions for various segments of the customers.

In MetLife, we have very passionate and energetic people. Of them, almost 70 per cent of our workforce are females working in agencies and 40 per cent in associates.

We are also dedicated to developing female leadership in the insurance industry as well. It is also great to see the diversity in the workplace here with people from all parts of the country where everyone is working with a customer-centric mindset, putting customers at the centre of everything we do, aligning with our purpose 'Always with you, building a more confident future'.

A lot of new insurance companies have come up in Nepal in recent years and now there are growing calls for consolidation in the sector. Is MetLife Nepal also taking steps in that direction? Nepal has a lot of opportunity for further growth as the country is experiencing double digit growth in the market. However, last year was not very easy at all and this year also started with another lockdown.

Nonetheless, there is a lot of passion and energy among people involved in this sector and we have considered this as an opportunity to grow it further. We are not only focused on investment but also on protection to bring the right approach as a complex solution, which is very important for us.

MetLife has focused on sustainable growth in Nepal and we expect this to continue in coming years with new companies and product offerings. With the commitment to continuously innovate to serve our customers and develop insurance experts in the market, we want to be recognised as a trusted partner who can help our customers build a more confident future.

How did the COVID pandemic affect MetLife - Global and Nepal?

The COVID-19 had a bad impact on everyone from the sales perspective and the retention of the business perspective because people were not able to visit or work. We tried to make it more simple and convenient for our customers with the help of online and digital payment systems as well as insurance claims.

At the same time, the pandemic also raised a very important topic. People started thinking about protection and security.

Life Insurance offers a combination of sales and protection, which also helps customers to understand the importance of the insurance sector.

COVID absolutely tested our progress and I am proud that we stepped up in terms of continuation of our services with the help of earlier adoption towards digitisation.

In Nepal, we already had a robust Business Continuity Plan in place, which enabled us to continue serving our customers and partners even from home during the lockdown periods while keeping our associates and agents safe. We improved the online facilities for our customers with introduction of our MetLife Nepal Customer App, online payment facility, online claims submission and policy change.

We have also made efforts to spread awareness and the importance of the insurance sector through agencies and customers.

Moreover, with the increased adoption toward digitising our services and with an increase in awareness about the insurance sector, the number of people interested in insurance has increased but the increase was not achieved without any efforts. The increase in people interested and aware about insurances can also be possible if people have access to it.

We are active in delivering insurance access to interested and aware customers.

We are also actively providing security for micro finance insurances, which helps create more opportunities.

However in Nepal, bank insurance is not allowed. In Malaysia and Vietnam, bank insurances have already started while Bangladesh is also ready to allow the process. Hopefully, this practice can be allowed in Nepal, which can prove to be very good for the insurance market and help in increasing its penetration. Although the penetration level of the market is better than some other countries, it can surely be improved further.

What are the weaknesses of the insurance sector in Nepal compared with other countries where you have worked? Nepal's insurance industry has been growing double digits for the past few years and is expected to continue in the coming years. Market penetration has also increased in the past few years. However, limited awareness and understanding of insurance is a major challenge for insurers in Nepal. Majority of people consider life insurance as an investment tool only and ignore the protection benefits that help them build financial resilience and protect their wealth. There is also a lack of actuaries in the country, who play a crucial role in the sector's overall development and an increased reliance in foreign services. It is important to have professionals inside the country.

In order to support the development of insurance expertise in the country, we have life insurance education programmes that MetLife offers to its employees through Life Office Management Association (LOMA), USA. We also have a dedicated training department that designs structured training programmes for our agency sales force and managers to build their skills at different career stages.

The need for strong collaboration between regulators, government and insurance companies is also crucial in the development and sustainable growth of the sector.

What are MetLife's long term plans in the country? Can you talk about some insurance policies that can and have directly benefited Nepalis?

Our services are not just products but a solution. We will also continue to invest in digital enabling our workforce and customers and also continue our efforts to constantly innovate, providing advanced protection solutions, digital experiences as well as value added services, which will be announced this year.

MetLife has focused on sustainable growth in Nepal and we expect this to continue in coming years. Our services are not just limited to products but a solution which provides protection and saving options.

Every product or service is introduced after research and understanding the needs of the customer. It is not just something we sell but must also meet the needs of the customers or else we cannot sustain.

We have solutions for high and middle-class customers.

We have also introduced a female-specific insurance plan LifeCare Beautiful which provides security for women against breast and cervix cancer in Nepal.

In 2009, we introduced micro insurance which enabled protection reach to rural areas of the country through micro finance institutes. Likewise, we are continuously working to understand the changing need of the customers to come up with better insurance solutions From our perspective, it is important to find the right solution for the right customer which can lead to running a sustainable business.

What are the reasons for growing insurance consciousness in Nepal?

The constant awareness efforts from regulators and insurance companies all over the country has played a major role in the growing awareness surrounding the insurance sector. Importance of insurance was felt most after the 2015 earthquake.

MetLife was the first to pay claim, within three days of the earthquake and also the highest payer of life claims due to the earthquake. The COVID pandemic also made people realise the importance of health insurance. MetLife aims to help our customers navigate through the various challenges in life. Our product lines include life insurance, accident and health insurance and group insurance, which provide solutions to customers based on their needs and life stage. This will be a continuous process for all insurance stakeholders to increase the insurance penetration.

A version of this article appears in the print on June 10, 2022, of The Himalayan Times.