Kathmandu. Experts from Nepal Insurance Authority, Koshi Province Office and JICA held discussions and interactions on climate-related disaster risk reduction, promotion of parametric insurance and challenges. Detailed discussions were held on the measures to manage the economic losses caused by climate change and disaster risk through insurance, the various types of parametric insurance policies currently in use and the data, infrastructure and technical aspects required for its expansion in Nepal.
Rajendra Maharjan, Province Chief of Nepal Insurance Authority, Koshi Province Office, said that availability of reliable, regular and adequate risk data is very important for the widespread expansion of parametric insurance in Nepal. He expressed the view that the necessary technical collaboration between the Government of Japan and the Authority would facilitate the design and development of parametric insurance as per Nepal’s needs and risks.
He drew attention to the possibility of developing an index related to climate-related risks such as floods, extreme temperatures, rains, heavy rains, droughts and other technologies by using the data based on satellites, atlases and other technologies. He said that if the data related to risk available in different geographical areas of the country could be systematized and integrated, the production of parametric insurance suitable for various risks could be developed and expanded nationwide through non-life insurance companies.
Likewise, discussions were held on the need of ensuring availability, credibility and access to data by coordinating and collaborating with the Department of Hydrology and Meteorology and other concerned government and technical bodies.
It was also emphasized that collaboration between regulatory bodies, insurance companies, technical institutions and other concerned stakeholders was necessary to identify and address the technical and practical challenges that may arise during the implementation of parametric insurance. Views were also exchanged on the possibility of multi-risk parametric insurance.
On the occasion, Province Chief Maharjan presented the example of wildlife-related multi-risk insurance policy recently implemented by the Insurance Authority, and stressed the need for developing new and need-based insurance policy.
The meeting was attended by four expert representatives including JICA expert Daki Noche, climate risk expert Madhusudan Gautam. In view of the increasing impact of climate and disaster risks, positive discussions were held on possible technical cooperation areas for the development and expansion of parametric insurance in Nepal by further strengthening the collaboration between data, technology, research and insurance.
