The International Conference on Inclusive Insurance 2024 commenced in Kathmandu on Tuesday, bringing together stakeholders to address the pressing issue of insurance accessibility for the poor and underprivileged.
Recognizing the vital role insurance plays for lower-income individuals, the conference aims to identify innovative strategies to expand coverage for these communities, who currently face significant barriers to accessing essential services.
Attracting around 500 participants, including 250 representatives from 44 countries alongside an equal number from Nepal, the four-day event features 35 panels covering diverse topics such as climate risk insurance, the integration of digital technology in microinsurance, and strategies to dismantle obstacles to inclusive insurance.
Organisers noted that the conference will focus on meaningful discussions aimed at promoting inclusive insurance, particularly for low-income families, vulnerable individuals, and micro, small, and medium enterprises.
During a press conference on Tuesday, Surya Prasad Silwal, chairman of the Nepal Insurance Authority and one of the organisers, proposed that insurance plans be made mandatory. He stated, "We have advised the government to make insurance compulsory for those who can afford it, while providing subsidies for those who cannot, ensuring it is mandatory for everyone." He added, "Even if insurance is made compulsory, it will ultimately benefit the insured."
Silwal pointed out that when third-party vehicle insurance and foreign employment insurance were mandated, those insured began to receive benefits.
Chairman Silwal also said that the authority has introduced a micro insurance policy aimed at improving access for lower-income individuals. He noted that micro insurance companies are performing well and warned that other insurers would need to take action if they fail to implement mandatory micro insurance.
Additionally, he noted that while insurance is provided during the construction of government projects, the lack of post-construction insurance has led the government to rely on foreign loans and grants to cover the damage sustained.
Dirk Reinhard, president of Munich Re Foundation, emphasized the necessity of raising awareness about insurance among low-income individuals, while Lorenzo Chan, president of the Microinsurance Network (MiN), pointed out the potential role of microfinance institutions and remittance companies in expanding insurance access.
Chunki Chhetri, president of the Nepal Insurers’ Association, highlighted how agricultural insurance has improved access to insurance for the lower class in Nepal.
Poshak Raj Paudel, president of the Life Insurance Association, stated that the conference would provide guidelines for enhancing insurance accessibility.
The conference is being organised by the Nepal Insurance Authority, Nepal Insurers’ Association, Life Insurance Association, and Nepal Micro Insurance Association in collaboration with Munich Re Foundation and MicroInsurance Network.
In his inaugural address, Vice President Ram Sahaya Prasad Yadav expressed his hope that the conference would create an environment that ensures insurance accessibility for the general public. He emphasised the critical role of insurance during natural disasters and underscored the need to promote inclusive insurance to mitigate financial risks faced by economically disadvantaged groups and enterprises.
