The 26 August flash floods in the country's border with Tibet could result in insured losses of over $130m, according to senior industry officials.
The floods have resulted in over 1300 deaths and economic losses of over $2.56bn in the Himalayan nation. With eleven hydropower projects based in the affected region, most claims are likely to be from this segment, as these projects are covered by standard commercial insurance policies that are still being assessed.
Data from the Nepal Insurance Authority as of 31 August 2026 reveal that 583 flood-related claims totalling NPR25.87 bn ($171.13m) have been received by insurance companies. Life insurance, personal accident and workers' compensation claims are yet to be collated, as authorities continue with the task of verifying deaths and missing persons in inaccessible areas.
Nepal's non-life insurance market consisting of 14 non-life insurers generated premiums of around NPR5.3bn during July-August. Reinsurance support for the market is mostly from domestic reinsurers Nepal Re and Himalayan Re, along with India's GIC Re and Germany's Hannover Re.