Kathmandu – Among the most talked-about and transformative technological innovations of the last decade, Artificial Intelligence (AI) has proven to be both astonishing and powerful. With the public launch of tools like ChatGPT, AI has become a household name, showcasing its immense capabilities to everyday users.

Globally, AI is reshaping entire industries—from banking and finance to insurance, stock markets, critical healthcare, and even warfare. Its usage extends across sectors, including space exploration. The insurance industry worldwide is also rapidly adopting AI to improve efficiency and customer service.

However, in Nepal, insurance companies appear to be lagging behind. Despite growing awareness, there has been little formal preparation or adoption of AI technologies in the insurance space. In contrast, banks and financial institutions in Nepal have already taken strides by integrating AI-powered tools such as chatbots to interact with customers via their websites.

AI holds transformative potential for Nepal’s insurance industry as well. From risk assessment to customer service and fraud detection, AI can introduce revolutionary changes. But for this to be effectively implemented, stakeholders must understand both the prerequisites and the opportunities AI offers.

In risk management, for instance, AI can analyze data related to natural disasters like earthquakes, floods, and droughts, helping insurers mitigate risks and determine accurate pricing. A major challenge for Nepali insurers is to expand services equally across both rural and urban regions. With AI-driven digital platforms, companies can enhance accessibility and operational efficiency.

Given these advantages, Nepal’s insurance companies have little choice but to embrace AI swiftly and strategically.