Finance Minister Dr. Prakasharan Mahat stressed the importance of creating awareness about insurance in the country. 

Speaking  during a program organized by the Nepal Insurance Surveyors Association on Friday, Minister Mahat highlighted the crucial role of insurance in mitigating potential risks in the future.

Whether it’s life insurance or non-life insurance, the emphasis should be on convincing individuals that insurance provides protection against significant risks,” he said. 

Minister Mahat identified two challenges in Nepal, emphasizing that everyone is susceptible to problems, and it is essential to contribute and raise awareness about how insurance can address potential future risks.

Despite the longstanding existence of insurance, Minister Mahat observed that it has not become a common subject in Nepal. He noted a prevalent mindset of questioning the need for insurance when individuals believe they currently have no problems. To address this perception, he advocated for building an understanding that insurance serves as a preventive measure against future uncertainties.

Minister Mahat acknowledged a common hindrance in insurance adoption—the reluctance of insurance companies to fulfill their obligations promptly during emergencies.

To overcome this issue, he urged all stakeholders in the insurance sector, including regulatory bodies, to undergo a radical transformation in their approach. He stressed the importance of adopting a more commercial mindset to enhance the efficiency and effectiveness of the insurance industry in Nepal.