A major earthquake occurred in Nepal on 25 April 2015 at 12:50 pm local time with a moment magnitude of 7.8. The epicentre was on the border of Dolakha and Sindhupalchowk, two districts of Nepal. The earthquakes caused extensive damage to buildings and thousands of deaths and injuries and was even felt in Pakistan, India and Bangladesh. Many (historic) buildings collapsed, temples have been ruined, roads destroyed. Nearly 8000 deaths in Nepal and tens of deaths in India & Tibet. The quake was followed by more than 300 aftershocks and another huge earthquake (6.8) on May 12.
Major opportunities for insurance business after recent earthquake:
The number of customers for non-life insurance are increasing due to this natural disaster.
In this natural disaster many (historic) buildings collapsed, temples have been ruined and roads destroyed. Therefore the tendency to purchase the non-life insurance policy are increasing for safety. Now people are insuring their building to compensate for huge losses.
Due to this disaster the customers for Life Insurance Company also increase:
Due to this recent earthquake people are feeling unsafe so for their and their family’s safety they are purchasing life insurance policy which is the great opportunity for the insurance business in Nepal.
Threats for insurance business after recent earthquake:
Due to the recent earth quake only four apartment building are safe out of the 16 apartment buildings. Various vehicles were also destroyed, around 8000 people deaths therefor most of the insurance company are facing the problem of liquidity after compensating for all these loss at once.