Kathmandu: Finance Minister Dr. Prakash Saran Mahat has lauded the role of insurance in financial risk mitigation. Addressing the Asian Insurance Meet 2023 held at Hotel Yak & Yeti, Finance Minister Mahat admitted that the insurance sector plays a pivotal role in securing sustainable development goals.
He said that insurance will be critical to the achievement of six of the seventeen Sustainable Development Goals(SDGs) set by the UN.
Minister Mahat further added, ”Today, we stand at a critical juncture where we are witnessing an unprecedented rise in risks, both traditional and new. We have experienced the devastating impacts of natural disasters, economic volatility, cyber threats, and pandemics. The pressing issue of climate change, rapid changes in demographics, evolving customer preferences, and advancements in frontier technologies pose significant challenges. These emerging risks not only pose challenges to the stability of insurance institutions but also impact the financial security of individuals, society, and businesses across the region.”
Insurers and reinsurers, being the backbone of the insurance industry, need to strengthen their risk management practices and underwriting capabilities. They need to be innovative in response to the converging challenges of natural disasters, social exclusion, climate change, and long-term finance.
Addressing the conference, Chairman of Nepal Insurance Authority Surya Prasad Silwal said, ”The South Asian region and particularly Nepal is one of the most vulnerable regions that has been impacted by climate change and natural disasters. As a region prone to seismic activities, it is essential to learn from each other’s experiences and develop effective earthquake insurance mechanisms. This conference will provide an excellent opportunity in this regard.”
The officials of regulatory bodies of the insurance industry of 20 countries including Nepal, Bangladesh, Sri Lanka, Bhutan, Cambodia, Indonesia, Maldives, Thailand, Macao, Jordan, Malaysia, Philippines, Singapore, Japan, insurance sector-related bodies, insurance companies, reinsurance companies, insurance surveyors, insurance agents, underwriters, insurance brokers, insurance experts and officials from various insurance service providers associations have participated in the conference.
The 3 days international conference with the theme “Building Resilience of Insurance towards emerging risks” will last be held till 10th June 2023. Nepal Insurance Authority in cooperation with the Asian Development Bank, International Association of Insurance Supervisors, and Access to Insurance Initiative.