12 August 2024, Kathmandu
The Nepal Insurance Authority has released comprehensive data on the performance of life insurance companies across Nepal for the last fiscal year.
Life Insurance Annual Business
According to the report, a total of 13,801,492 insurance policies were sold nationwide, generating a substantial revenue of NPR 15.65 trillion. This data provides a detailed view of how life insurance businesses performed in each of Nepal’s seven provinces, revealing significant regional differences in both policy sales and revenue.
Bagmati Province emerged as the top performer, with life insurance companies earning NPR 69.61 crore from 9,834,992 policies sold. This impressive figure can be attributed to Bagmati’s status as the capital region and a major business hub, which naturally leads to higher insurance activity and greater market engagement. The concentration of commercial and administrative activities in this province contributes to its leading position in the insurance sector.
Following Bagmati, Lumbini Province secured the second-highest revenue, totalling NPR 24.39 billion. In this province, companies sold 996,375 insurance policies. Lumbini’s strong performance highlights its growing insurance market, likely driven by economic development and increasing public awareness about insurance benefits.
Koshi Province ranked third, generating NPR 19.58 billion from the sale of 1,183,594 policies. This province’s solid showing reflects a robust insurance market that has successfully engaged a significant number of policyholders. The strong performance in Koshi indicates a positive trend in insurance adoption in the eastern part of Nepal.
Gandaki Province reported an insurance fee of NPR 15.80 billion, with 533,851 policies sold. The province’s results demonstrate a healthy insurance market, supported by increasing public interest and accessibility to insurance products. Similarly, Madhesh Province earned NPR 14.13 billion from 595,273 policies, showing a strong regional market presence and continued growth in insurance uptake.
In the Far Western Province, life insurance companies earned NPR 9.35 billion from 525,581 policies sold. Although this is a lower figure compared to the top-performing provinces, it still reflects a notable level of insurance activity in the region. Conversely, Karnali Province reported the lowest earnings, with NPR 4.26 billion from 211,826 policies. This lower revenue is attributed to several factors, including geographical challenges, limited awareness about insurance, and underdeveloped infrastructure.
Overall, the data underscores the varied levels of insurance market penetration across Nepal, highlighting the disparities in policy sales and revenue generation. While some provinces show strong performance, others face challenges that impact their insurance sector’s growth and development.
Life Insurance Annual Business
