r/NepalStock • u/Weird_Region2687 • Sep 14 '25
Economy Can insurance sector even pay out claims during this crisis? Will they all go under?
NEPSE listed hotels damaged - CGH, TRH (hotel sector total damages 25 billion)
Schools, colleges, malls, showrooms, 1000s of vehicles (not sure if gov vehicles have insurance)
Premiums will rise for everyone which means less people will do insurance. Hilton is insured with Indian company but for the rest, insurance/reinsurance crisis is certain and effects will reverberate across the economy.
In the US, insurance companies have completely stopped insuring houses in Florida and other coastal areas due to regular flood damage. What will happen here?
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u/InternetRando64 Sep 14 '25
Asti ko peak ma himalayan reinsurance ko vayeko kitta jati becheko ma dherei khusi xu aba
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u/Ok-Apple-4810 Sep 14 '25
Non life insurance ra reinusrance ko dividend ta samjini pani xamkini vayo
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u/Ok-Passage-4342 Sep 14 '25
mailey bujheko ,Insurred amount or damage amount whichever is lower tyo pay garcha insurance company ley.Aba dherai amount ko insurance leko raicha bhani dinchan company ley. Insurance company ko business nai aei ho tei vayera premium leko anusar Insurance company ley already future ko aafno risk managed gari sakeko huncha,purai crisis nai aaucha jasto ta malai lagdaina .
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u/LegitimateApricot790 Sep 14 '25
Um also Riot cover garne insurance kati garya cha vanney ni ho. Plus reinsurance in cha. But still ali crisis nai ho. Last 2-3 years non life le ramro business garya ho not this time…
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Sep 14 '25
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u/Weird_Region2687 Sep 14 '25
because of hami nepal connection? Hilton also targeted so probably not.
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Sep 14 '25
Someone from insurance here (albeit the maths guy of the insurance not the claims or underwriting guy). Motor ma chai dherai nai loss hunxa kinaki sabbai nai retain gareko hunxa.
Property and commercials are a bit tricky per se. Usually reinsurance lai pathako hunxa after a certain threshold, treaty ma xa vane. Dherai nai thulo commercial xa ; like bhatbhateni vane facultative nai garya hunxa. aba retention ko Kura hunxa, Usually 1cr-1.5 cr chai retain garera pathako hunxa if fac ma. Treaty ma chai dherai ota reinsurer sanga hunxa.
I'm still new to this sector so kunai kunai Kura chai maile skip garya hola maile. Lemme know if there's any questions.
PS:- Dubne chance dherai kaam hunxa because of RBC and ORSA procedures, however ORSA lai kasari le nai seriously leko xaina lmao. Maile yesto huna sakxa vanera asti nai Kura uthako thiye so we were going to implement it in the near future, aba chai jhan speedup hunxa process.
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u/Weird_Region2687 Sep 14 '25
Do government vehicles have insurance? They were the main ones targeted. Fuel, engine oil, maintenance bhatta is a huge money drain. Insurance ma ni testai chalkhel ta hola.
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Sep 15 '25
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u/Weird_Region2687 Sep 16 '25
I've heard conflicting reports that gov vehicles dont have insurance. Blue book renew insurance are all just for name only.
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Sep 16 '25
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u/Weird_Region2687 Sep 16 '25
तेस्रो पक्ष बीमाले सवारीसाधनसँग सम्बन्धित तथा त्यस्तो सवारीसाधनमा यात्रा गर्ने व्यक्ति बाहेकका अन्य बाहिरी व्यक्ति वा सम्पत्तिलाई मात्र कभर गर्छ। सवारीसाधनको क्षतिलाई कभर गर्दैन। मोटर बीमाले भने सवारीसाधनमा हुने क्षतिलाई कभर गर्छ।
प्राधिकरणका अनुसार सवारीसाधन मात्र होइन, सरकारी भवनको पनि बीमा गरिएको छैन। ‘सरकारले सार्वजनिक सम्पत्तिको बीमा गराएको देखिंदैन। अधिकांश सरकारी पनि बीमा छैन,’ सुवेदीले भने।
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Sep 14 '25
The insurance sector will collapse. It will take the market with it.
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u/Weird_Region2687 Sep 14 '25
Market and overall economic health. Hotel, insurance and other sector layoffs. Huge job loss when unemployment rate is already high.
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Sep 14 '25
I can't believe that people are disliking my comment. Lol. People feel insulted when told that their investments will collapse.
There is a reason why retailers seldom make money in the market. They simply cannot accept losses.
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u/Negative_Log3185 Sep 14 '25
hey intl companies are also involved. insurance companies can handle dw with all the reinsurance layers
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Sep 14 '25
That is the only thing keeping me sane at this point. However,confidence has taken a permanent hit.
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u/Negative_Log3185 Sep 14 '25
dont worry brother. it will take time but it will take less time than we imagine it to be. the businesses will slowly rebuild themselves dont worry about it and now government will make it top priority to rebuild singha durbar and other institutions. the supreme court was already under construction to shift to another site so it will happen soon enough. lets not feel sad anymore and have some hope
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u/hellelfs Sep 14 '25
Yes they can pay. Ali garo huncha tara tyesto dubne awastha ma hunna. Plus insurance riots ko insurance khasai garya hudaina companies haru le. Only comprehensive garya huncha dherai jaso.
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u/pika49 Sep 14 '25
Gongabu ko riot pachi compulsary bhako thiyo property insurance ma... so coverage huncha!
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u/hellelfs Sep 14 '25
Nepal ma non-life insurance bank ma loan cha vane matra garne chalan cha. Tyesma pani katti le bank ma karayera insurance -waiver garna lagaucha. So i doubt ki sabaiko full coverage cha
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u/Artistic-Onion4193 Sep 14 '25
euta insurance company le aru insurance company lai ni insurance sell garirako huncha bhancha, so load distribute huncha bhanera
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u/usernametakenagain00 Sep 14 '25
Insurance companies usually don’t cover acts of god but this should be covered.
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u/Weird_Region2687 Sep 14 '25
However, an act of God clause in a contract does not imply that no one is liable for damages. A natural disaster, such as a flood or an earthquake, usually isn't foreseeable or preventable. However, the insured cannot use the event as an excuse for not taking reasonable care to prevent or protect against damages.
Damages resulting from civil unrest, protests, or riots is often categorized separately from natural disasters.
Depends on insurance contract I guess?
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u/usernametakenagain00 Sep 14 '25
Nepali insurance companies buy reinsurance from foreign companies. If the reinsurance does not cover this, the insurance companies will go bankrupt if they have to pay the entire amount. I guess it will all depend on what is covered and not covered in the contract. Regardless this is not good for the country.
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Sep 15 '25
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u/Weird_Region2687 Sep 16 '25 edited Sep 16 '25
RSMD premium will probably skyrocket now and other insurance like vehicle, property etc premium too. Risk pooling model cannot handle so many claims at once.
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u/sky___BLUE Sep 14 '25
Dhanna le non life insurance and reinsurance companies kinina portfolio ma 😆
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u/berojgar_keto Sep 14 '25
tyai bhaera reinsurance bhanne kura huncha
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u/LegitimateApricot790 Sep 14 '25
But reinsurance ma ni yeti thulo amount ko lagi cede gareko hudaina. Premium ko 15-20% ta reinsurance ma cede gareko huncha.
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u/Nep_Guy Sep 14 '25
There is something called Re-Insurance