Karnali/Sudurpaschim - In a significant step toward strengthening Nepal’s financial resilience to disasters and climate risks, the National Disaster Risk Reduction and Management Authority (NDRRMA), in partnership with UNDP Nepal under its global Insurance and Risk Finance Facility, conducted provincial-level orientation workshops this week in Karnali and Sudurpaschim Provinces.
The orientations brought together key stakeholders, including provincial ministries, mayors and Chief Administrative Officers of local governments, representatives from the National Insurance Authority, and state-owned insurance companies. The focus was on strengthening the use of insurance as a risk-transfer mechanism to protect public finances and support faster recovery from disasters at both national and subnational levels.
Speaking at the Karnali Province workshop in Surkhet, Rajeev Bikram Shah, Minister for Economic Affairs and Planning, highlighted Nepal’s acute vulnerability to climate-induced disasters. He emphasized that disaster risk management can no longer be treated as a standalone emergency response issue and called for a whole-of-society approach. Stressing fiscal preparedness, the Minister underlined the need to integrate insurance and risk-transfer instruments directly into provincial and municipal budgeting frameworks as a core pillar of long-term fiscal resilience.
From the federal perspective, Roshani Shrestha, Joint Secretary at NDRRMA, underscored the urgency of institutionalizing disaster risk financing at provincial and local levels, particularly as Nepal prepares for graduation from Least Developed Country (LDC) status in 2026. She encouraged provinces and local governments (pallikas) to strengthen localized Risk Management Frameworks and embed insurance mechanisms into routine governance and planning processes.
A similar message resonated during the Sudurpaschim Province orientation held in Dhangadhi. Prakash Bahadur Bam, State Minister for Economic Affairs, reflected on the financial strain faced by the provincial government during the September 2025 protests, when damage to public infrastructure led to significant unplanned expenditures due to inadequate insurance coverage. He acknowledged under-insurance as a key fiscal vulnerability and reaffirmed the province’s commitment to working with local governments and development partners to better manage disaster, climate, and property risks through insurance-based solutions.
Er. Dinesh Prasad Bhatt, Chief Executive Officer of NDRRMA, emphasized the importance of public–private collaboration in expanding insurance coverage, particularly in agriculture and livestock sectors. He noted that increasing investment in these areas is critical to protecting rural livelihoods, food systems, and economic stability amid escalating climate risks.
Mayors and chairpersons from various municipalities shared experiences of recent climate shocks, including floods and extreme weather events, which have intensified local food insecurity and strained municipal budgets. Their reflections reinforced the growing need for stronger financial protection mechanisms at the local level to ensure continuity of essential services during crises.
Reflecting on the programme’s outcomes, Dharma Swarnakar, Assistant Resident Representative of UNDP Nepal, highlighted the value of peer learning between provinces and pallikas. He noted that preparedness supported by effective risk-finance instruments enables faster, more predictable, and fiscally sustainable recovery, reducing long-term development setbacks.
The orientation workshops signal a decisive shift toward anticipatory and resilience-focused financial planning in Nepal’s disaster governance. By strengthening coordination across federal, provincial, and local levels, the initiative aims to safeguard hard-earned development gains and ensure the timely restoration of essential services in the face of increasing climate and disaster risks.
