Himalayan Everest Insurance Faces Heavy Liability Amid Reinsurance Oversight

Kathmandu – Himalayan Everest Insurance Company has incurred a significant financial burden following the recent Gen-Z movement, with insurance claims totaling nearly Rs. 971.4 million filed against the company.

According to sources, Anju Shrestha, who previously led the reinsurance department at the former Himalayan General Insurance Company and now serves as CEO of Himalayan Everest Insurance, is facing scrutiny over the handling of the company’s reinsurance arrangements.

During the merger period and subsequent operations, certain risks reportedly remained unreinsured, resulting in substantial liabilities for the company. Under property and vehicle insurance policies, a large portion of the riot and terrorism insurance coverage—previously managed under Nepal Reinsurance Company—was overseen internally by CEO Shrestha.

Due to the absence of adequate reinsurance coverage, the company is now facing a direct exposure of approximately Rs. 250 million, which could have been avoided if part of the risk had been transferred to a reinsurance partner.

Out of the total 271 insurance claims lodged in connection with the Gen-Z movement, Himalayan Everest Insurance’s share of liabilities stands among the highest in the domestic insurance sector, with an estimated exposure of Rs. 200 to 300 million.

Meanwhile, internal sources suggest that CEO Shrestha’s decision-making power within the company remains limited, as Chairman Mahendra Krishna Shrestha continues to play a dominant role in key administrative and financial matters. Even routine expenses reportedly require the chairman’s prior approval.

The incident has raised questions within the insurance sector regarding corporate governance, internal autonomy, and reinsurance risk management practices in domestic insurance companies.