How the low earthquake insurance penetration rate threatening Nepal in the forthcoming major earthquakes

A low earthquake insurance penetration rate in Nepal can have significant consequences in the event of a major earthquake. Some of the ways it can threaten Nepal include:

1. Lack of financial resources: Without insurance, many individuals and businesses will have limited financial resources to rebuild or repair damage caused by an earthquake. This can result in prolonged recovery times, increased economic losses, and greater hardship for affected communities.
2. Lack of incentive for risk reduction: Without insurance, there is less incentive for individuals and businesses to invest in risk reduction measures, such as retrofitting buildings to better withstand earthquakes. This can result in increased damage and loss of life in the event of an earthquake.
3. Overburden on the government: Without insurance, the government may be required to provide financial assistance to affected individuals and communities. This can put a strain on government resources and divert funding from other important priorities.
4. Limited access to credit: Without insurance, businesses and individuals may have difficulty accessing credit to rebuild or repair damage caused by an earthquake. This can impede recovery efforts and impede economic growth in the long term.

It's important to note that insurance is not the only solution to mitigate the impact of earthquakes, and other measures such as risk assessment, building codes and emergency preparedness are also important. However, insurance can play a key role in providing financial resources to help communities recover from an earthquake and in promoting risk reduction measures.