Published jointly by UNDP and the Nepal Insurance Authority (NIA), a landmark study reveals a critical "insurance protection gap" threatening Nepal's micro, small, and medium enterprises (MSMEs)—the backbone of our economy

Focusing on the highly vulnerable agriculture and tourism sectors, the report shows that formal insurance is currently limited, complex, and poorly aligned with small businesses' real-world risks, such as climate shocks and business interruptions. Consequently, entrepreneurs rely on fragile, informal coping strategies.

The study highlights a powerful business case for insurers to design affordable, demand-driven, and bundled products. By leveraging digital innovation and building trust, we can transform insurance into a powerful tool for resilience.

UNDP's IRFF program remains committed to working with regulators, policymakers, and the private sector to bridge this gap, secure livelihoods, and drive inclusive economic growth across Nepal.