Pre-Feasibility Study of Crop and Small and Medium-Sized Enterprises Insurance Pilots for Nepal's Mu

This report analyzes how Nepal can use disaster insurance to mitigate risk for vulnerable farmers and small and medium enterprises (SMEs) and recommends scalable solutions that can help boost disaster preparedness and financial resilience.

The report considers issues including low insurance penetration, difficult terrain, and a lack of awareness, and recommends Nepal undertake parametric pilot studies including for rice farmers against extreme weather events. It shows why Nepal should consider high-level solutions such as insurance risk pools and premium subsidies, combined with measures to improve data, tackle gender disparities, and reduce capacity gaps to help restore livelihoods following disasters.