Insurance

Nepal's globally recognized success in biodiversity conservation has led to a remarkable recovery of wildlife populations and ecosystems. However, increasing interactions between people and wildlife have also intensified human-wildlife conflict (HWC), causing substantial losses to crops, livestock, property, and livelihoods in communities living around protected areas, buffer zones, and biological corridors.

Recognizing that conventional relief and compensation mechanisms alone are insufficient to address these growing risks, Ujyalo Nepal has been pioneering insurance-based solutions since 2020. Between 2020 and 2026, the organization provided wildlife risk insurance to vulnerable communities in the Khata Biological Corridor connecting Bardiya National Park (Nepal) and Katarniaghat Wildlife Sanctuary (India), covering 454 people in Patharbhoji, 172 in Bhakraiya. In 2023, the programme expanded to 243 households (591 individuals) in Shivpur Hattisar, Thakurbaba Municipality, generating valuable evidence on how insurance can strengthen community resilience while complementing government relief mechanisms.

Building on these field experiences, Ujyalo Nepal, with financial and technical support from the United Nations Development Programme (UNDP) under the Biodiversity Finance Initiative (BIOFIN), conducted the national study Designing Insurance-Based Schemes for Compensating Losses from Wildlife Targeting Crop and Livestock Damages in Nepal. The study identified key gaps in Nepal's existing compensation system and proposed an innovative Human-Wildlife Coexistence Insurance Scheme that integrates biodiversity conservation with financial risk management.

The study has significantly contributed to the development of Nepal's Wildlife Risk-Focused Insurance Scheme by the Nepal Insurance Authority-a pioneering initiative that is among the first of its kind globally to specifically address wildlife-related risks through insurance. The scheme promotes affordable risk-sharing while encouraging preventive measures, community participation, and conservation-friendly practices.

Building on this milestone, Ujyalo Nepal, with support from UNDP/BIOFIN, has launched the Wildlife Risk-Focused Insurance Programme as a pilot initiative in Mechinagar Municipality, Jhapa. The pilot aims to demonstrate a scalable and sustainable biodiversity finance solution that protects vulnerable households from wildlife-induced losses while strengthening coexistence between people and wildlife. The lessons generated through this initiative are expected to support national policy implementation and the expansion of wildlife risk insurance to other high-conflict landscapes across Nepal.

By linking conservation, community resilience, and innovative financial protection, Ujyalo Nepal is helping shape a future where people and wildlife can thrive together.