UNDP launched Initiatives on Insurance and Financial Risk Mitigation

Kathmandu: The United Nations Development Programme Nepal (UNDP) has started an initiative related to insurance and financial risk reduction (Mitigation). The initiative was taken as a part of the insurance and financial risk reduction facility implemented by UNDP in more than thirty countries of the world through a program where journalists had not participated.

UNDP said that this initiative will prioritizes financial resilience by leveraging insurance and financial risk mitigation mechanisms.

In that program, Ram Prasad Ghimire-Revenue Secretary of the Ministry of Finance, Anil Pokharel- Chief Executive Officer of the National Disaster Risk Reduction and Management Authority and Ayshanie Medagangoda-Labe (Sri Lanka) – Resident Representative of UNDP Nepal, jointly released a report related to same subject in Nepal.

The report states that Nepal is one of the 10 countries most affected by climate change and that Nepal is at high risk of floods, landslides, earthquakes and droughts.

The report revealed that the government is committed on enhancing the ability of the insurance industry to provide accessible and affordable insurance products through the amendments and updated provisions in the law such as the amendment in the provision of Micro Insurance Act 2079 B.S.

Although credit-life micro insurance and agricultural insurance provide financial security to low-income and distressed Nepali households, the insurance market is still not inclusive as a whole due to lack of awareness about insurance and lack of data due to insurance companies not being able to bring products as per the need.

Although Credit-life micro insurance and agricultural insurance provide financial security to low-income and Nepalese having problems in the households, the insurance market is still not inclusive as a whole due to lack of awareness about insurance as well as due to lack of data collection which has become the reason that the insurance companies are not being able to bring products as per the need.

Revenue Secretary, Mr. Ghimire said that the Government has formed a task force to develop a financial risk framework which will help to reduce financial risk.

Chief Executive Officer of the National Disaster Risk Reduction and Management Authority, Mr. Pokhrel emphasized the need for cooperation between the Government, partner agencies, and the private sector in order to address climate and disaster risks.

In the same program, UNDP Resident Representative, Mrs. Labe said that, one of the solutions that can contribute to strengthening the comprehensive risk management function for any country and community is Insurance as well as Financial risk reduction.