The sudden floods that devastated Nepal in August, caused by a glacier collapse and an avalanche of ice, rock and mud, could generate over one billion dollars in insured losses, according to estimates from InsuranceAsia News. The rating agency AM Best warns that, although the direct impact on the Nepalese insurance market is limited due to low insurance penetration in the country, a significant portion of the losses will be transferred to international reinsurers. Thirteen hydropower projects were damaged, representing approximately 748 MW of capacity, which caused a 3.90% drop in the Nepalese insurance index. Aon estimated at 157 million dollars the damage to roads and bridges alone, while the Nepalese Finance Minister calculated total reconstruction needs at 4 to 5 billion dollars. The travel insurance sector is also expected to be affected, with claims related to cancellations, evacuations and search operations for missing tourists.
Eco30/08/26, 18:04
