Kathmandu. Nepal’s non-life insurance sector has faced huge claim payment pressure due to big and continuous disasters in the last 1 year. <\/p>\n
According to a recent report released by Care Age Nepal, the Jenji agitation in September 2025, followed by floods and landslides in October of the same year and the recent Bhotekoshi-Trishuli floods in August 2026 have severely tested the financial and profitability of the insurance sector. Disaster Incidents and Claims Pressure: Due to the September 8-9, 2025 agitation, 3,303 non-life insurance claims were filed. The total estimated amount is about Rs 23.45 billion. <\/p>\n
The floods and landslides of October 2025 added a burden of about Rs 3.26 billion through 704 claims. Due to the Bhotekoshi-Trishuli floods of August 2026 (especially concentrated in the Rasuwa region), there were 2,180 claims, according to the data of the Nepal Insurance Authority. The estimated amount is about Rs 20.99 billion. The property and engineering and risk insurance sectors have been affected the most. <\/p>\n
The operating profit of non-life insurance companies has weakened due to a sharp increase in claim payments compared to the modest increase in insurance premium collections. The total net claim payment of the 14 non-life insurance companies increased by 23.3 per cent to Rs 14.80 billion, while the average loss ratio increased from 67.1 per cent to 76.7 per cent. With the increase in claims, the total net profit of the companies declined by 38.7 per cent to Rs 2.72 billion. Despite the large claims, the reinsurance regime has helped to keep the net liabilities of the insurance companies under control to a great extent. Due to the rising claims, special attention has to be paid to the quality, adequacy and counterparty risk of reinsurance. <\/p>\n
Although the amendment to the reinsurance directive by the Nepal Insurance Authority has increased the participation of internal reinsurance, it has brought a new wave in the market. Although the capital and solvency ratio of most non-life insurance companies seems satisfactory, the impact of the floods of 2026 will be seen in the coming days. The report points out that only companies with strong capital, prudent risk bearing and effective reinsurance arrangements will be able to deal with such disasters in the coming days.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Nepal’s non-life insurance sector has faced huge claim payment pressure due to big and continuous disasters in the last 1 year. According to a recent report released by Care Age Nepal, the Jenji agitation in September 2025, followed by floods and landslides in October of the same year and the recent Bhotekoshi-Trishuli floods in […]<\/p>\n","protected":false},"author":16,"featured_media":322394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45096],"tags":[],"class_list":["post-322414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-non-lifeinsurance-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322414","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=322414"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322414\/revisions"}],"predecessor-version":[{"id":322415,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322414\/revisions\/322415"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/322394"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=322414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=322414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=322414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}