Insurance scheme to benefit small businesses
Summary
Nepal has introduced a first-of-its-kind insurance scheme to protect small businesses from disruptions, income loss and other risks. A new report says most MSMEs remain underinsured despite facing climate shocks, disease, pandemics and business interruption.
Key Points
- A new insurance scheme has been brought into force to protect small retail and service businesses from operational and income risks.
- A joint UNDP Nepal and Nepal Insurance Authority report finds Nepal’s MSMEs are dangerously underinsured, with only about 10 percent holding any insurance.
- The report says current products do not match MSME risks in agriculture and tourism, and claims processes, weak distribution and low insurance literacy are major barriers.
- The Nepal Insurance Authority has told insurers to market the new product through organised groups, while the report recommends bundled and simplified insurance products.
