News of Insurance – Chanky Chhetry, President of the Nepal Insurers’ Association, has highlighted Nepal’s high vulnerability to natural disasters. Speaking at the inaugural session of the second National Insurance Discourse, he emphasized the critical need for risk mitigation.

“Nepal is at high risk. The main challenge is reducing this risk. In 2015, the massive earthquake caused significant damage,” Chhetry said. Recalling the disaster, he added, “More than 9,000 lives were lost, and the total damage was estimated at $7 billion. However, insurance claims amounted to only NPR 16 billion.”

Similarly, he noted that the floods in October also caused extensive damage. However, insurance claims related to those floods amounted to only NPR 12 billion, a figure that might decrease after verification. “Insurance is a necessity. We must educate the public about its importance,” he stressed.

Addressing allegations that insurance companies delay claim settlements, Chhetry countered that out of NPR 40 billion in claims last year, NPR 28 billion had already been settled. He stated that 60-65% of claims are paid out annually, with delays occurring due to various reasons.

Although insurance companies are becoming more innovative, a lack of understanding at the government level remains a challenge. “Government properties are uninsured. If we bring them under insurance coverage, it will provide much-needed protection,” he said.

Chhetry also pointed out that Nepal’s reinsurance policy mandates local reinsurance, preventing capital outflow. However, he warned that concentrating all reinsurance risk within Nepal poses challenges. He emphasized the need to diversify risk and also addressed the hydropower sector, which he described as a high-risk industry requiring better mitigation strategies.