The payout marks Nepal’s first use of a parametric drought insurance policy, stakeholders said, with funds supporting food aid and farming tools in Bajura district.
The new policy triggers financial relief when a set number of people are affected by extreme weather, and follows the rollout of a similar impact-based policy in Lao PDR in 2025.
Floods and earthquakes dominated Asia’s catastrophe losses in 2025, underscoring challenges linked to urbanisation, exposure growth and risk assessment, according to Swiss Re.
States have begun formalising disaster risk transfer with a blended parametric-and-indemnity home insurance programme offering cover of up to ₹1m (US$10,536.29) for below-poverty-line households.
China's property insurance market is poised for a five-year expansion, with Hong Kong's Wang Fuk Court fire sharpening focus on the home insurance protection gap that insurers are racing to close.
