Kathmandu – The history of insurance in Nepal dates back to 2004 B.S. with the establishment of Nepal Goods Chalani and Insurance Company, now operating as Nepal Insurance under the initiative of Nepal Bank Limited. Initially focused on non-life insurance, the life insurance business began in 2029 B.S. Currently, Nepal hosts 38 insurance companies, including 14 life insurance companies, 14 non-life insurance companies, 7 microinsurance companies, and 2 reinsurance companies.

Despite the availability of these services, many Nepali citizens still do not prioritize insurance, largely due to a lack of reliable information and poor economic conditions. The perspectives of various individuals highlight these challenges:

• Gagan Adhikari, a general citizen, acknowledges the importance of insurance but feels that awareness is low among the public. She notes that insurance should be understood as a form of risk management rather than just an investment. She emphasizes the importance of reading and understanding insurance policies to avoid issues with claims later on.
• Smriti Padel views insurance as a crucial tool for risk reduction, particularly in the health sector. She believes that while insurance is necessary for everyone, rumors about denied health insurance claims have eroded trust. Smriti suggests that every company should insure its employees and that insurance is essential for covering expensive medical treatments and tests.
• Nilakantha Gautam has personal experience with insurance and agrees that it is necessary. He mentions the state’s health insurance initiatives as beneficial but expresses concern over the poor service provided by some insurance companies. He recounts experiences of difficulty in claiming insurance, which he believes undermines trust in the system.
• Student Susma Chaudhary highlights the gap in insurance education, particularly in the curriculum. While she understands the need for insurance, financial constraints prevent her from obtaining it. This lack of knowledge and economic barriers further limit the spread of insurance coverage.

These insights reflect the broader challenges facing the insurance sector in Nepal, where increasing public awareness and improving trust in insurance companies are key to expanding coverage. The need for better communication and education about the benefits and processes of insurance is evident, along with efforts to ensure that insurance services are reliable and accessible to all.