Insurance Sector Receives Limited Attention in Government Policy and Program

Kathmandu — The insurance sector has received only limited coverage in the government’s policy and program for the upcoming fiscal year.

Under the policy framework, the government has pledged to strengthen and develop the capital market by making it safer and more competitive. To support this objective, it plans to expand the participation of institutional investors, pension funds, insurance companies, mutual funds, and non-resident Nepalis in the market.

The policy and program also prioritizes the expansion of crop and livestock insurance coverage for small farmers as part of broader efforts to strengthen the agricultural sector. The government said it would modernize and simplify insurance services by fully digitizing the issuance of insurance policies, payment of premium subsidies, and insurance claim procedures to ensure farmers can access services more conveniently.

In the health sector, the government has proposed restructuring the national health insurance program. The policy document states that the reform is aimed at making health insurance more effective and citizen-friendly.

Insurance has also been recognized as an important instrument for disaster management and risk mitigation. The government said it would expand the use of risk transfer tools, including insurance mechanisms, in post-disaster compensation, relief distribution, and reconstruction activities.