Deputy Director Rajendra Maharjan of NIA Represents Nepal in Global Reinsurance Summit in India

Kathmandu – Rajendra Maharjan, Deputy Director of the Nepal Insurance Authority, represented Nepal at the second IFSCA-IRDAI-GIFT IFSC Global Reinsurance Summit held in Mumbai, India, from January 20 to 22, 2025.

During the summit, Maharjan highlighted the challenges and opportunities in Nepal’s insurance sector, emphasizing the industry’s role in disaster resilience. He stated, “While insurance is vital for disaster management in Nepal, the sector remains underdeveloped. The Government of Nepal and the Insurance Authority are committed to strengthening the industry, with the implementation of a national insurance policy already showing promising signs.”

He noted that Nepal ranks among the top 20 countries globally in terms of disaster risk, citing studies from the Global Risk Index (2020) and the United Nations Disaster Risk Reduction (2019). Natural disasters, climate change, rapid urbanization in Kathmandu, and unorganized infrastructure have amplified disaster risks. Maharjan also emphasized the vulnerability of agriculture and tourism, which are heavily dependent on stable environmental and economic conditions.

He discussed Nepal’s initiatives, such as the Disaster Risk Reduction and Management Act, 2017, and community-based disaster risk management programs, including early warning systems for floods. However, he highlighted challenges like low insurance penetration in rural areas, lack of awareness, and geographical constraints.

To address these issues, Maharjan proposed developing natural disaster bridges, improving regulatory roles, promoting research on risk modeling and pricing, advancing microinsurance, and introducing CAT Bonds through parametric covers and capital markets.

He emphasized the importance of regional cooperation, urging regulators like IRDAI and neighboring authorities to harmonize standards, share knowledge, and work collectively to strengthen resilience.