Climate-Related Risks

Climate-related risks are an increasing priority for Nepal, posing significant threats to property, infrastructure, agriculture, and public health.

At NLG Insurance Company Ltd., we recognize that Nepal’s unique geography—ranging from the lowland Terai to the high Himalayas—makes our nation highly vulnerable to the impacts of climate change. Rising temperatures, shifting rainfall patterns, and weather extremes are not just environmental issues; they directly impact the financial stability and safety of our communities.

1. Understanding the Impact: Why Risks Are Rising

The frequency and intensity of natural disasters in Nepal are driven by several key climate factors. Understanding these causes is the first step toward preparedness.

• Glacial Lake Outburst Floods (GLOFs): Global warming is accelerating glacier melt, creating unstable glacial lakes that threaten mountain valleys and downstream communities with sudden, devastating floods.

• Erratic Monsoon Patterns: Changing rainfall cycles have made the monsoon season unpredictable, triggering flash floods and landslides that damage homes, businesses, and critical infrastructure.

• Increased Fire Hazards: Rising temperatures and prolonged dry spells have heightened the risk of forest fires, particularly in the hill and mountain regions, threatening biodiversity and property.

• Urban Challenges: Rapid urbanization and deforestation have reduced natural barriers, worsening soil erosion and reducing the land's ability to absorb excess water during heavy rains.

• Health Implications: Warmer climates are expanding the reach of vector-borne diseases (such as dengue and malaria) and increasing the incidence of heat-related illnesses, placing additional strain on families and healthcare systems.

2. Customer Guidance: Risk Mitigation Strategies

To protect your property, health, and livelihood, coordinated action is essential. We recommend the following practical measures to minimize your exposure to climate-related risks:

For Homeowners & Businesses:

• Strengthen Disaster Preparedness: Ensure your property is resilient. Retrofit structures to withstand heavy rains and floods, and clear drainage systems regularly to prevent waterlogging.

• Energy Efficiency: Transition away from fossil-fuel-dependent appliances. Minimize the use of petrol/diesel generators and adopt energy-efficient cooling systems to reduce your carbon footprint.

• Adopt Electric Vehicles (EVs): Where possible, especially in commercial operations, switch to electric vehicles to lower emissions and contribute to cleaner air.

• Reforestation & Conservation: Support or participate in local tree-planting initiatives. Vegetation acts as a natural buffer against landslides and soil erosion.

For Health & Safety:

• Health Preparedness: Be proactive against climate-sensitive diseases. Use mosquito nets, maintain proper sanitation to prevent water-borne diseases, and stay hydrated during heatwaves.

• Stay Informed: Keep updated on local weather forecasts for potential floods and landslides.

Our Commitment

At NLG Insurance Company Ltd., we are committed to looking beyond standard coverage. By integrating climate risk awareness into our services, we strive to help our customers navigate these uncertainties. Through risk assessments and continuous customer education, we aim to contribute to a safer, more resilient, and sustainable Nepal.