Sector: Insurance
Situation: Civil Unrest & Riots
The Situation:
In March 2025, Kathmandu, Nepal, became the epicenter of violent pro-monarchy protests. What started as demonstrations soon spiraled into riots, leading to vandalized shops, looted goods, and major roads being blocked.
For retail businesses, the unrest was devastating. Not only did stores suffer direct property losses, but supply chain disruptions quickly followed as deliveries were halted and curfews restricted the movement of goods. The combined effect triggered a wave of insurance claims, with both property damage and business interruption claims being filed at the same time.
For insurers, this meant strained resources, delayed verification, and the challenge of keeping operations running while navigating restricted access to affected areas.
Insurance Challenges During the Kathmandu Riots
The riots revealed several vulnerabilities for insurers operating in Nepal:
- Property Losses: Retail shops and warehouses faced vandalism, broken infrastructure, and stolen goods, directly increasing claim volumes.
- Supply Chain Disruptions: Road blockages and strict curfews halted logistics, preventing deliveries and delaying supply restocking.
- Business Interruption Claims: Store closures across Kathmandu created an unusual surge in business interruption claims, often filed simultaneously with property damage claims.
- Adjuster Access Limitations: Insurance adjusters were unable to access high-risk zones easily due to police cordons, unrest hotspots, and movement restrictions.
These challenges underscored how civil unrest creates layered risks for the insurance sector, not only financial exposure but also operational difficulties in verifying and processing claims.
How Datasurfr Intelligence Supported Insurers
To help insurers respond effectively, Datasurfr Intelligence provided real-time situational awareness and validated reporting throughout the unrest. This intelligence helped mitigate risks and improve decision-making in five major ways:
1. Proactive Risk Mitigation
Insurers received timely unrest alerts, giving them early visibility into escalating protests. This proactive monitoring allowed insurers to anticipate a potential surge in claims before unrest reached critical levels.
2. Exposure Clarity
Datasurfr mapped retail-heavy hotspots most affected by vandalism and looting. This clarity allowed insurers to focus on regions with the highest exposure and prepare for likely claim volumes more efficiently.
3. Operational Continuity
With roads blocked and curfews in place, supply chain networks were severely disrupted. Real-time intelligence on roadblocks, police cordons, and transport delays helped insurers identify where supply chain disruption claims were most likely to arise.
4. Claims Verification Support
Verified intelligence confirmed incidents of vandalism, theft, and property damage, providing insurers with reliable evidence to validate claims quickly. This reduced the risk of fraudulent or exaggerated claims entering the system.
5. Safe Deployment Guidance
Datasurfr provided situational updates on restricted zones, protest hotspots, and active police interventions, ensuring that insurance adjusters could be deployed safely and efficiently. This minimized operational risks and prevented delays in field assessments.
Impact
The integration of Datasurfr Intelligence into insurers’ crisis response had a measurable impact:
· Better Anticipation of Claims Surge: Insurers were prepared for the influx of claims as protests intensified.
· Faster Verification of Property Damage: Verified intelligence streamlined the validation process for claims related to vandalism and looting.
· Safer Deployment of Adjusters: Field teams were dispatched strategically, avoiding high-risk zones.
· Enhanced Client Trust: Proactive communication reassured clients that insurers were actively monitoring the situation and responding quickly.
Key Takeaways for the Insurance Sector
The Kathmandu riots highlighted critical lessons for insurers dealing with civil unrest scenarios:
· Intelligence-driven operations are essential. Early alerts and hotspot mapping help insurers prepare before claims overwhelm resources.
· Business interruption claims require proactive planning. When combined with property damage, these can double the exposure for insurers.
· Operational continuity depends on real-time updates. Roadblocks, curfews, and supply chain delays can have cascading effects on claims.
· Field safety must remain a priority. Adjusters need accurate situational updates to avoid high-risk areas.
· Proactive client engagement builds resilience. Transparent communication enhances trust during periods of uncertainty.
Conclusion
The Kathmandu riots of 2025 serve as a powerful case study in how civil unrest directly impacts the insurance sector. Insurers faced a complex situation where property losses, business interruptions, and supply chain disruptions converged, creating a flood of claims and significant operational strain.
By leveraging Datasurfr Intelligence, insurers were able to navigate this crisis more effectively, anticipating claim surges, validating losses with greater accuracy, and ensuring the safety of field teams. More importantly, they strengthened their relationships with clients through proactive updates and faster claims support.
This case demonstrates that in today’s volatile risk environment, real-time intelligence is not optional but essential for insurers seeking resilience in the face of civil unrest and riots.
