Nepal’s non-life insurance industry is experiencing a significant increase in claims following the monsoon floods that struck the country on Oct. 4.
According to Reuters, intense rainfall resulted in a series of landslides and flash floods across Nepal, leading to significant loss of life and widespread disruption. According to government officials, at least 47 people have died as a result of these weather-related incidents.
According to the Nepal Insurance Authority (NIA), insurers have received a total of 704 claims related to damages from the heavy rainfall, with the overall claim value reaching Rs 3.26 billion.
According to Nagarik Network’s report, the majority of these claims are associated with property insurance, which alone accounts for 364 claims totalling Rs 2.70 billion.
Engineering and contract risk policies have also been impacted, with claims amounting to Rs 480.04 million.
Agriculture insurance claims have reached Rs 43.26 million from 209 cases, while vehicle insurance claims stand at Rs 35.7 million across 42 reported incidents.
Among the companies most affected, Shikhar Insurance has received 54 claims valued at Rs 609.4 million.
Siddhartha Premier follows with 68 claims totalling Rs 506.4 million, and NLG Insurance has reported 43 claims worth Rs 504.7 million.
The situation in Nepal reflects a broader global trend of rising insured losses from natural catastrophes.
The latest report from Verisk, a global data analytics provider, estimates that the average annual insured property loss from natural disasters now stands at US$152 billion.
This figure is based on catastrophe models that factor in inflation, urban development, event frequency, and climate change.
Verisk’s analysis indicates that the global modelled insured average annual loss increased by US$32 billion compared to the previous year.
Over the last five years, the average annual insured loss has been US$132 billion, up from US$104 billion in the preceding five-year period.
The report also notes that property exposure in modelled countries has grown by 7% annually from 2020 to 2024, with about 1% of the year-on-year increase attributed to long-term climate effects.
The protection gap remains a concern, particularly in Asia, where insurance covers only 12% of economic losses, compared to 48% in North America.
A separate review by Willis projects that global insured losses from natural catastrophes will again surpass US$100 billion in 2025, continuing a seven-year trend.
The Willis Natural Catastrophe Review highlights several major events this year, including the Los Angeles wildfires, which have resulted in insured losses exceeding US$40 billion.
Other significant events include wildfires in Japan and South Korea, a record tornado season in the United States, and severe weather incidents in Australia and Ireland.
