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GIZ RFPI Asia Reviews Impact of Microinsurance Regulation in Nepal and Introduces Insurance as a Disaster Risk Financing Option in addition to Disaster Risk Preparedness

By: Raquel Capio and Dante Portula

Nanda Ritsma, of GIZ INCLUDE, facilitating MSME group during the DRIM training workshop.

Dante Portula, of GIZ RFPI Asia, explaining the Four-Step Analytical Framework

RFPI Asia, a regional program of GIZ headquartered in Manila, has been supporting the Insurance Board of Nepal (Beema Samiti) since 2013 in the promotion of microinsurance or inclusive insurance especially for the-low income sector. The Beema Samiti, is a member of the MEFIN, a network of insurance regulators from seven (7) countries in Asia which promotes learning and exchange between regulators and the industry players. GIZ RFPI has been supporting MEFIN since its conceptualization four (4) years ago. Other member-countries of the Network are Indonesia, Mongolia, Pakistan, Philippines, Sri Lanka and Vietnam.

GIZ RFPI Asia has developed several instruments to support regulators in the promotion and implementation of inclusive insurance. Two of these tools were introduced and implemented in Nepal during the program’s mission in Nepal 28 August to 08 September 2017.

Since 2013, the government of Nepal has issued a number of directives which aim to increase access of the people to agriculture insurance and microfinance. In 2014, the Beema Samiti issued its first microinsurance directives, thus the mission to conduct Regulatory Impact Assessment (RIA) on Microinsurance. RIA is looking into the impact of the directives in promoting inclusive insurance in Nepal based on inputs of regulatory bodies, government implementing agencies, insurance companies, distribution channels, MSMEs and farmers. The mission also involved analysis of industry data.

GIZ Team and Beema Samiti Team

Multi-stakeholder Dialogue (MSD) where outputs of the RIA are presented to stakeholders

Another regulatory tool prepared by GIZ RFPI Asia is a learning manual in bridging natural catastrophe insurance protection gap for MSMEs. This tool is in its testing stage, having been used in Philippines, Vietnam, Nepal and Mongolia.

The GIZ RFPI mission in Nepal includes a training workshop with key stakeholders in Nepal including insurance regulatory bodies, risk reduction and management bodies, insurance companies, development agencies, cooperatives and MSMEs. The training team from GIZ RFPI Asia was joined with a technical staff from Nepal-based project GIZ INCLUDE.

The mission was conducted in coordination with GIZ Nepal country office.