9 August 2024, Kathmandu
By the end of June in the fiscal year 2080/81, insurance companies in Nepal have achieved business worth over 2 trillion rupees, according to data released by the Nepal Insurance Authority.
Nepal Insurance Market Expansion
The total insurance premium collected by both life and non-life insurers reached Rs 1 trillion 97 billion 79 crores 76 lakhs, marking an 8.34 percent increase compared to the previous fiscal year. In the year ending June 2079/80, insurance companies had collected a total of Rs 1 trillion 82 billion 567 million in premiums.
Life insurance companies recorded a significant 9.82 percent rise in total premiums, earning Rs 1,42,355,600 in the review year, compared to the previous year. On the other hand, non-life insurance companies saw a 3.12 percent increase in premiums, with earnings totalling Rs 41.46 billion 61 lakh rupees, up from Rs 40 billion 21 crores 21 lakh rupees the previous year.
Currently, 14 life insurance companies, 14 non-life insurance companies, 4 small life insurers, and 4 small non-life insurers are operating in Nepal. In the review year, life insurers issued 1 crore 38 lakh 81 thousand 492 policies, a 1.81 percent decrease from the previous year’s 1 crore 41 lakh 37 thousand 321 policies. Conversely, non-life insurers issued 29 lakh 1 thousand 640 policies, reflecting a 3.91 percent increase compared to the previous year’s 27 lakh 92 thousand 516 policies.
Despite the growth in the insurance sector, only 43.27 percent of Nepal’s population is covered by insurance, down from 44.38 percent the previous year, indicating that over 56 percent of the population still lacks insurance coverage.
About Nepal’s Insurance Market
Nepal’s insurance sector has expanded significantly, with total premiums rising by 8.34% to NPR 1.98 trillion by the end of June 2080/81. Life insurance premiums increased by 9.82% to NPR 1.42 trillion, while non-life premiums grew by 3.12% to NPR 41.46 billion. Despite this growth, insurance coverage for the population stands at 43.27%, a slight decrease from 44.38% the previous year. The market includes 14 life and 14 non-life insurers, along with 8 small insurers. This growth reflects increasing market reach but also highlights the need to expand coverage further.
Nepal Insurance Market Expansion
