Non-Life Insurance Companies Collect Over NPR 8.12 Billion Premium in Two Months

26th September 2025, Kathmandu

Nepal’s non-life insurance sector has kicked off the new fiscal year 2025/26 with an impressive performance, collecting a total premium of NPR 8.12 billion in the first two months (Shrawan and Bhadra).

Non-Life Insurance Premium

This strong start is based on the sale of 432,069 insurance policies, signaling a rising public awareness and demand for general insurance products in the country. The data, which has been closely watched by industry analysts, showcases the sector’s resilience and its potential for significant growth in the coming months. The performance is especially noteworthy as it reflects sustained economic activity and a growing emphasis on risk mitigation among individuals and businesses in Nepal. The overall business volume and the number of policies sold indicate that non-life insurance is becoming an increasingly integral part of the country’s financial landscape.

Top-Performing Companies Lead the Charge

The premium collection data for the first two months reveals a clear hierarchy among the non-life insurance companies, with a few leading the market with substantial premium income. The top ten companies, in particular, have dominated the market, accounting for a significant portion of the total premium collected.

• Sagarmatha Lumbini Insurance: Leading the pack, this company collected a premium of NPR 89.44 crore. Their strong performance highlights their market leadership and customer trust.
• Shikhar Insurance: Coming in a close second, Shikhar Insurance generated NPR 84.82 crore in premiums, cementing its position as a major player in the industry.
• Siddhartha Premier Insurance: This company secured the third position with a premium income of NPR 77.33 crore, showcasing robust growth.
• Himalayan Everest Insurance: With NPR 71.17 crore in premium collections, this company demonstrates strong market presence.
• NLG Insurance: NLG Insurance rounds out the top five with a collection of NPR 68.75 crore, indicating a healthy business volume.

Other notable performers among the top ten include IGI Prudential Insurance (NPR 62.91 crore), Oriental Insurance (NPR 59.50 crore), Neco Insurance (NPR 58.01 crore), United Ajod Insurance (NPR 57.48 crore), and Sanima GIC Insurance (NPR 49.37 crore). The fact that all these companies have collected premiums above NPR 49 crore in just two months speaks volumes about the overall health and competitiveness of the non-life insurance sector.

Factors Contributing to the Strong Growth

The impressive performance of the non-life insurance sector can be attributed to several key factors that are shaping the Nepali economy:

Motor Insurance: Motor insurance remains a crucial driver of premium growth. With rising vehicle ownership across the country, fueled by increasing disposable income and infrastructure development, the demand for mandatory third-party and comprehensive motor insurance is consistently high. This segment is often the largest contributor to the overall non-life premium pool.

Infrastructure and Construction: The ongoing development of major infrastructure projects, including roads, bridges, and commercial buildings, has led to a surge in demand for engineering, contractor, and property insurance. These high-value policies contribute significantly to the total premium volume.

Increased Public Awareness: Aggressive marketing campaigns by insurance companies and a greater understanding of financial protection among the general public have led to increased policy sales for various products, including health, travel, and personal accident insurance. People are becoming more aware of the importance of mitigating risks, a trend accelerated by recent natural disasters and economic uncertainties.

Regulatory Support: The Nepal Insurance Authority (NIA), formerly known as the Beema Samiti, has played a vital role in creating a favorable environment for growth. By introducing new regulations, promoting digitalization, and ensuring a competitive market, the NIA has encouraged insurers to innovate and expand their reach.

Market Outlook and Challenges

The outlook for the remainder of the fiscal year 2025/26 appears promising. With the festive seasons of Dashain, Tihar, and Chhath approaching, a further increase in economic activity and travel is expected, which will likely boost sales of policies such as travel and property insurance. The ongoing digitalization of premium collection through online platforms and mobile banking is also making it easier for customers to purchase and renew policies, contributing to the sector’s growth.

However, the sector must also navigate a few challenges. As the volume of business increases, so does the potential for claims. Efficient and timely claims settlement will be crucial for maintaining customer confidence and ensuring the long-term sustainability of the industry. Additionally, the intense competition among the numerous non-life insurers could put pressure on profit margins. Companies will need to find a balance between offering competitive rates and maintaining a strong financial position.

Overall, the strong start to the fiscal year is a positive sign for Nepal’s financial sector. It highlights the growing maturity of the non-life insurance market and its increasing importance as a tool for financial security and economic stability.

For More: Non-Life Insurance Premium