Insurance Industry Demonstrates Strength in National Crisis, Says CEO Shrestha

Kathmandu — Nepal’s insurance industry has once again shown that it can stand firmly with the nation during times of crisis, says Himalaya Everest Insurance Limited CEO Anju Shrestha. Reflecting on the aftermath of the Gen-Z Movement, she stated that the recent events have become a turning point in Nepal’s socio-economic landscape and a defining test for the insurance sector.

The protests of Bhadra 2082, which caused widespread damage and disrupted businesses across the country, have left a lasting impression on Nepal’s economic history. According to Shrestha, the situation has allowed both the public and stakeholders to understand the real value and urgency of insurance in a way that had not been fully realized before. She emphasized that despite facing immense pressure, the crisis has injected new energy and direction into the insurance industry.

The Nepal Insurance Authority has confirmed that the claims resulting from the movement have exceeded those filed during the 2015 earthquake and the COVID-19 pandemic, making it the biggest claims event in Nepal’s history. Nepal’s non-life insurance market, worth around Rs 45 billion, may be small compared to global markets, yet Shrestha believes the industry has proven its capability on an international scale. She explained that despite limited resources, Nepal has managed to handle claims of an unprecedented scale, demonstrating that even a small market can manage massive risks responsibly and effectively.

So far, claims worth nearly Rs 24 billion have been reported, with around 16 percent—approximately Rs 4 billion—already settled. Shrestha noted that this quick response shows the industry’s commitment to supporting the country during difficult times and contributes to economic recovery by helping businesses, industries, and entrepreneurs get back on their feet.

She said the crisis has changed how people perceive security, loss, and risk. The general public and business community now see insurance as a necessary safeguard rather than an optional service. This shift, according to her, is an opportunity for insurance companies to bring more people under insurance coverage, create new products that address emerging needs, and contribute more meaningfully to the country’s financial stability.

Shrestha added that the current situation has also highlighted the importance of collaboration. She emphasized that insurers should work closely with reinsurance companies, the government, NGOs, and other stakeholders to build stronger systems and develop solutions for new and evolving risks. Such cooperation, she said, will help the country prepare better for future challenges.  Additionally, she also stressed the need for Nepal’s insurance sector to embrace modern technology. Digital claims processing, online insurance services, and mobile applications, she noted, are essential tools for improving customer experience and expanding access to remote areas of the country. The adoption of advanced technology, she believes, is vital for building trust, efficiency, and transparency within the sector.

According to Shrestha, it is now necessary for insurance companies to update their risk assessment methods and ensure that premium rates are based on timely and scientific evaluations. She said greater investment in technology and the development of youth-friendly insurance products will help companies meet the expectations of the new generation. She also emphasized the need for strengthening the reinsurance system so that even small policyholders can be protected from large-scale risks.

She expressed that the insurance industry’s responsibility extends beyond claim payment. With major businesses such as Bhatbhateni, Chaudhary Group, and Hilton Hotel already preparing to reopen despite their losses, she said insurers must also commit to supporting entrepreneurship and contributing to the nation’s economic revival.

Shrestha believes that the challenges brought by the Gen-Z Movement should not be viewed solely as a crisis. Instead, she sees them as an opportunity to transform Nepal’s insurance industry into a stronger, more transparent, technologically advanced, and customer-focused sector. She emphasized that this moment offers a chance to build a reliable and accountable insurance system that will serve the nation more effectively in the years ahead.

This article is adapted from her commentary published in the Economic Policy, Sejan Souvenir 2082 by the Society of Economic Journalists Nepal (SEJON).