Kathmandu. The deadline for the insurance company to include the risk element of climate change while preparing a new insurance plan is approaching. The insurer has to clearly disclose how climate risk is addressed in the insurance plan’s insurance fee determination.
According to the provisions of the “Climate Risk Guidelines, 2078 BS”, issued by the NRA on January 1, 2019, the insurer will have to do such homework in the case of the new insurance plan after the completion of three years of the implementation of the guidelines. The AUTHORITY will approve the policy only if the technical note of each policy submitted by the insurer for prior approval of the AUTHORITY from the month of July has mandatorily included the issue related to climate risk.
According to the provisions of this guideline, which came into effect two years ago, the insurer should include details in his annual report, highlighting the impact of climate risk on his business. In addition, if the details are not published for any reason, then the insurer has published any alternative information in this regard or whether the climate risk details are relevant to the insurer’s portfolio or the reason for not making such details available.
According to the provisions of the guidelines, the insurer should publish the details related to the impact of climate risk through his website and give suggestions to his customers on how to reduce such risk.
