Nepal’s Insurance Sector Shows Strong Growth in Fiscal Year 2024/25 with Business Surge

10th August 2025, Kathmandu

Nepal’s insurance industry had a strong fiscal year in 2024/25, with both life and non-life sectors reporting significant business growth.

Nepal’s Insurance Sector Grows

The life insurance sector saw a premium collection increase of 16.05%, while the non-life sector grew by 6.77%. This combined performance signals a maturing market driven by increasing public awareness and strategic initiatives by insurance companies.

Life Insurance Sector Exceeds NPR 181 Billion

The life insurance sector led the industry’s growth, with total business for the fiscal year surpassing NPR 181.42 billion. This impressive figure highlights the increasing acceptance of life insurance as a crucial financial tool for protection and savings in Nepal.

Nepal Life Insurance retained its position as the market leader by a wide margin, collecting the highest premium of NPR 48.03 billion. Its success is largely attributed to its extensive network and a broad range of products tailored to a diverse customer base. Close behind, National Life Insurance secured the second position with NPR 22.42 billion in premiums, while LIC Nepal came in third with a collection of NPR 19.92 billion. These top three companies continue to dominate the market, intensifying competition through product innovation and enhanced customer service.

Other key players also showed strong performance. Himalayan Life Insurance collected NPR 17.66 billion, followed by Surya Jyoti Life Insurance and Asian Life Insurance with NPR 11.18 billion and NPR 10.24 billion, respectively. Companies like Rastriya Life Insurance, Citizen Life Insurance, and Sanima Reliance Life Insurance also made significant contributions, with premiums ranging from NPR 7 billion to NPR 9.85 billion. The growth of the life insurance sector reflects a positive trend toward greater financial literacy among the Nepalese population.

Non-Life Insurance Sector Grows to Over NPR 43 Billion

The non-life insurance sector also experienced steady expansion, with total business for the fiscal year reaching NPR 43.96 billion. This 6.77% growth highlights the rising demand for general insurance products, such as property, health, and motor insurance, in a developing economy.

Shikhar Insurance was the top performer in this segment, leading the market with premium revenue of NPR 5.79 billion. Following Shikhar, Sagarmatha Lumbini Insurance collected NPR 5 billion, securing the second position. Siddhartha Premier Insurance came in third with NPR 4.31 billion, while Himalayan Everest Insurance was close behind with NPR 4.10 billion.

Other notable non-life insurers included IGI Prudential Insurance, Neco Insurance, and NLJ Insurance, with premiums ranging from NPR 3.06 billion to NPR 3.86 billion. The growth in this sector is indicative of an economy with increasing assets that require protection, and a growing middle class with the means to afford it.

Market Dynamics and Future Outlook

The combined growth of Nepal’s insurance industry reflects a positive and maturing market. This trend is driven by several key factors:

• Increased Financial Literacy: There’s a growing understanding among Nepalese citizens about the importance of insurance as a tool for mitigating risks and securing financial futures.
• Product Innovation and Digitalization: Insurance companies are increasingly leveraging technology to offer innovative products and customer-centric services. Digital platforms are making it easier for people, especially in urban areas, to access and manage their policies.
• Supportive Regulatory Environment: The Nepal Insurance Authority has played a crucial role in fostering a competitive and transparent environment, which has boosted consumer and investor confidence.

Market leaders like Nepal Life Insurance and Shikhar Insurance owe their success to strong brand presence and extensive distribution networks. Experts predict that the sector’s upward trajectory will continue, fueled by rising middle-class incomes, rapid urbanization, and ongoing regulatory reforms. The introduction of microinsurance and health insurance products is also expected to further penetrate rural areas and expand the industry’s reach, making insurance an even more vital part of Nepal’s financial ecosystem.

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