Kathmandu. Nepal has suffered nearly $7 billion in disaster losses in the last four decades.
The losses suffered by Nepal due to earthquakes, floods, landslides, fires and the coronavirus pandemic are increasing more and more. In recent years, as climate change and unpredictable crises intensify, Nepal’s increasing disaster damage is threatening its development progress.
Nepal needs to invest Rs 50 billion annually for disaster damage management and reconstruction. This investment has not been able to provide a sustainable solution.
Insurance claims worth Rs 23.22 billion have been made for the damage caused by arson and vandalism during the violent protests on September 7 and 24. As of Oct. 9, a total of 3,099 insurance claims had been filed across the country following recent incidents. The need for a robust risk transfer system has never been clearer.
To address this gap, the United Nations Development Agency (UNDP) Nepal through its Universal Insurance and Risk Finance Facility and National Disaster Risk Reduction and Management Authority organized a two-day orientation program on insurance and disaster risk finance for senior government officials. Julien Chevillard, Deputy Resident Representative of UNDP Nepal, stressed that when a disaster strikes, the question is always where the money comes from. Risk financing helps answer that question before a disaster strikes.
Participants also reflected on recent events, including major public infrastructure damage during the September 2025 protests, and noted how limited insurance coverage forced the government to bear large, unplanned expenses.
