Country Briefing Note: Nepal (NM)

The microinsurance market in Nepal, while steadily growing, is still in a developing stage. Insurance companies have been offering low-premium coverage to cater to the needs of the low-income population, but have not labelled it as microinsurance. Nepal Beema Pradhikaran, the country’s insurance regulator, has been integral in developing the microinsurance sector and helping insurance providers to offer a range of products. The Microinsurance Directive of 2014 prescribed seven microinsurance products that have evolved over the years to improve the lives of the population.

• There is a high dependency on the agriculture sector for employment, and the true level of general unemployment is unknown as informal sector participation is unaccounted for. 

• Nepal is increasingly vulnerable to climate shocks and its resilience is affected by infrastructure challenges and a complex topography.

• Microinsurance is a relatively new concept in the country and presents an opportunity to improve financial access.

• The national bank and regulator have been proactive in supporting the growth of the microinsurance sector with several policy reforms in recent years.

• International partners and development agencies have been providing Nepal with technical assistance and training to help scale the provision of financial services.