Kathmandu. Credit rating agency AM Best has estimated that the total insured damage caused by the recent devastating floods in Nepal will be less than the total economic loss. <\/p>\n
This has been estimated in AM Best’s report titled ‘Nepal’s Devastating Floods Pressure on the Underinsured Market’. “Due to one of the lowest insurance penetration rates in Asia, there will be an expected reduction in the damage covered,” the report said. <\/p>\n
Despite the overall low data for the broader market, AM Best anticipates that the insured losses will be concentrated in specific business areas. Existing hydropower plants, infrastructure engineering projects and commercial property along major trade routes are at the greatest risk. “Because these large projects have high insured prices,” AM Best said, “individual insurers and their reinsurance partners can face large claims relative to their size.” \u2019<\/p>\n
Motor and sea cargo insurance companies may also face smaller claims due to delays in cross-border trade while the Gyrong border crossing is closed. “In addition, travel insurance providers may increase their claims for emergency medical evacuations, trip cancellations and early return arrangements as the flood-affected areas are popular tourist destinations,” the report said. <\/p>\n
As local Nepali non-life insurance companies are heavily dependent on the global market to weigh disaster risk, international reinsurance companies are expected to pay a larger share of the total claims. <\/p>\n
“Foreign reinsurance companies will bear most of the costs,” said Victoria Ohorodnik, senior director and head of analytics at AM Best. “The progress of claims related to hydropower and engineering projects will require a closer evaluation in the coming months.” \u2014 Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Credit rating agency AM Best has estimated that the total insured damage caused by the recent devastating floods in Nepal will be less than the total economic loss. This has been estimated in AM Best’s report titled ‘Nepal’s Devastating Floods Pressure on the Underinsured Market’. “Due to one of the lowest insurance penetration rates […]<\/p>\n","protected":false},"author":16,"featured_media":312832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-314693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/314693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=314693"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/314693\/revisions"}],"predecessor-version":[{"id":314694,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/314693\/revisions\/314694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/312832"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=314693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=314693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=314693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}