Mahendra Shrestha
Managing Director
Himalayan General Insurance

What is your company’s stake in the aviation insurance market?

Himalayan General has been writing aviation insurance since 1998 and it is a portfolio we continue to be interested in.

It is said that some insurance companies are trying to form a pool to collectively handle the aviation insurance claims. What is the latest progress in this regard?

Preliminary discussions have been initiated for the formation of aviation insurance pool. The formation of such a pool will not only allow insurance companies to gain capacity but also make it viable for the re-insurers to continue supporting Nepal’s aviation insurance market.

What future do you see for the aviation insurance business in Nepal?

It is a portfolio which is an absolute necessity in Nepal and one that will continue to grow.

Aviation insurance premium in Nepal is said to be one among the highest in the world? Why is it so high? How can we lower it?

Aviation insurance premium in Nepal is certainly very high. Some big losses in the last few years have pushed up the premium rates substantially. The continually rising premium rates are, of course, a serious concern because they impact the sustainability of the business. The pooling mechanism is one of the possibilities we are exploring in order to stabilize the market. Eventually, if the total premium paid is more than the total amount claimed in losses, we hope the premium will start to come down.

What are the key challenges and issues facing the aviation insurance industry in Nepal and what needs to be done to address these challenges?

Rising premium rates and shrinking market capacity are two major challenges the aviation insurance industry is currently facing. The Aviation Insurance Summit was one way to address these challenges and find a common direction for improvement and growth.

The country’s first-ever aviation insurance summit was organized in the capital recently. How helpful was this summit?

The Summit brought local stakeholders, including operators, regulatory bodies, insurance companies and banks as well as key players in the regional and global aviation insurance industry (including underwriters and re-insurance brokers) under one roof. It gave the Nepali stakeholders a global perspective on our current situation as well as access to the expertise of visiting delegates, all of whom have extensive experience in this sector, including in other countries with contexts similar to Nepal.

All the delegates who attended the Summit said that they had found it to be a helpful introduction to the Nepal aviation insurance market, adding that it will help them take better decisions for supporting it.