The recent Gen Z protests have caused heavy damage to many businesses in Nepal. Early estimates suggest that life and non-life insurance companies could face liabilities of around Rs 10 billion.
Some of the most affected places include Bhaktabteni Supermarket, CG Electronics, Hilton Hotel, Ncell, Yulens School, and Central Business Park. After assessing the damage, the Nepal Insurance Association said claims could total between Rs 30 and 35 billion.
Earlier, it was estimated that claims might exceed Rs 50 billion. However, the current assessment shows that the total claims are unlikely to go above Rs 35 billion. Insurance companies have reinsurance coverage, which means they will only have to pay about 35 % of the claims. This means that if claims reach Rs 30 to 35 billion, insurance companies’ share will be roughly Rs 10 billion. The remaining cost will be covered by reinsurance companies.
Surendra Thapa, CEO of Nepal Reinsurance Company, said the exact liability can only be calculated after insurance companies submit detailed claim reports. This process may take a few more days. Claims are still being processed, and numbers may change slightly. Insurance companies are closely monitoring the situation, and the market is expected to stabilize once all reports are received.
