Gen-Z Protests Create Huge Pressure on Insurance Sector

Kathmandu-The nationwide Gen-Z protests, marked by destruction, arson, looting, and property damage, have generated record insurance claims for private and commercial properties. Uninsured government and public structures are expected to impose a significant financial burden on the state.

Hotels, supermarkets, media houses, industries, warehouses, private homes, and vehicles were heavily damaged during the protests in Kathmandu and other major cities. Preliminary estimates suggest losses of approximately NPR 2.5 billion in just 25 hotels, resorts, lodges, and restaurants.

The Nepal Insurance Authority has instructed private and commercial insurers to fast-track claims, requiring weekly submission of damage reports. Uninsured government structures—including Singha Durbar, the Prime Minister’s and President’s offices, the Parliament, ministerial residences, and police stations—will place a direct financial responsibility on the state.

Nepal Reinsurance Company will coordinate claims under catastrophe insurance (Hulunga Bima), with 35% of damages covered by the respective insurer and 65% by the reinsurer.

Insurance experts warn that this situation mirrors the post-earthquake scenario, with limited coverage in the private sector and no coverage for government assets, highlighting a significant risk for the financial stability of both insurers and the state.