Kathmandu. In recent years, the number of business leaders, landowners and high-income earners has increased significantly as economic growth has increased in Nepal. This class now wants world-class financial protection to protect its assets. However, Nepal’s traditional insurance market has been able to offer limited products and low claim limits. As a result, the wealthy have not been able to fully trust local insurance.
Why TAG_OPEN_strong_101 is insurance important for the wealthy?
Insurance is generally considered to be a means of transferring risk to others. But for the upper class, its importance goes far beyond the ordinary home or life security.
Complex and high-value asset protection: The wealth of the rich class is not just a house; These may include luxury buildings, properties scattered around the world, expensive artifacts, luxury jewelry, high-speed cars, or even private airplanes. Local insurance cannot provide coverage based on the market value of such particular properties.
Liability and special risks: Wealthy people need protection against employee liability, financial losses from cyberattacks, losses from the cancellation of large events, and specific risks such as hijacking and ransom. Such complex personalised coverage is almost absent in Nepal.
Continuity of Legacy: Insurance is not only a compensation, it is a long-term financial tool to restore or restore an inheritance.
Main reasons for not trusting local insurance
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The poor trust of Nepal’s wealthy class in local insurance companies is mainly due to product gaps and quality of service.
Difference between Nepalese insurance and global standard{
Threshold of claim
Worldwide: has an unlimited or high claim limit depending on the asset or risk.
In Nepal: A company’s capital base is smaller, so there is a lower limit for high-value assets.
Special Coverage
Worldwide: Special insurance is available for artefacts, private aircraft, or international property.
In Nepal, there is no special insurance plan for risks such as TAG_CLOSE_span_83 artwork, cybersecurity, and hijacking.
Claim Payment Process
Worldwide: claims are processed quickly, prioritized, and the main focus is on getting assets back to their original state.
in Nepal: claims are slower, paperwork is more and the service is standardized, which may not meet the needs of the upper class.
Health & Travel
Worldwide: provides universal health coverage with facilitation services that can be accessed at any hospital.
Health insurance in Nepal: is limited to local hospitals. There are limited options for international treatment.
Because of these gaps, the wealthy are unable to fully rely on local insurance companies for the real protection of their wealth.
Solutions and Way Forward
In order to meet the needs of the elite and win their trust, the Nepali insurance market needs to be improved at the following three levels.
Suggestions for insurance companies
International Partnerships: TAG_CLOSE_span_74 Local companies should partner with international reinsurance providers to increase their risk appetite. So that large assets can be insured.
Expert Services: Establish an ‘Elite Department’ to serve only high-end customers and provide them with personalized risk analysis and rapid claims management services.
Innovative Products: Insurance plans should be launched covering many types of protections, including art, cybersecurity, and international health.
Suggestions for the Regulator (Insurance Authority of Nepal)
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Cross-border incentives: Regulators should make policy arrangements to facilitate cross-border security and international claims management.
Innovation-friendly regulation: Support the development of the insurance sector by introducing new actuarial rules for high claim limits and specific risks.
Suggestions for Wealthy Consumers
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Demand for Transparency: The customer himself should ask the company for clarity of coverage, detailed claim limits, and clarity about the services added.
Dual Coverage: It is better to take dual coverage from a local company and international risk insurance from a foreign company.
Nepal’s insurance market is at a critical juncture. In order to attract high-class customers and win their trust, it is imperative to discard traditional silos and expand in line with digital technology and global standards. Insurance must now evolve from just a financial instrument to a reliable system to protect the vast wealth and heritage of the elite. If local companies can seize this opportunity and modernize their services, the scope of the market is sure to widen.
