Nonlife Insurance Premium Growth 2081: Nepal Insurance Market Expands by 7.44%
26th June 2025, Kathmandu
Nepal’s non-life insurance industry has shown stable growth in the current fiscal year. According to the Nepal Insurance Authority, total premium income of the sector rose by 7.44% as of the end of Jestha 2081 BS (June 2025).
Nonlife Insurance Premium Growth 2081
Premium Collection Crosses Rs. 39 Billion
As per the latest data, the 14 licensed non-life insurance companies in Nepal earned Rs. 39.03 billion in gross premiums during the first eleven months of this fiscal year. In the same period last year, the premium collection stood at Rs. 36.32 billion. This indicates a steady upward trend in the insurance market despite economic uncertainties.
A total of 25.87 lakh insurance policies were issued during this time, slightly fewer than the 26.08 lakh policies issued last year.
Shikhar Insurance Leads In Total Business Volume
Shikhar Insurance remains the top player in Nepal’s non-life insurance sector. The company earned Rs. 5.09 billion in premiums this year, which is a 3.96% growth from last year’s Rs. 4.89 billion.
Right behind Shikhar, Sagarmatha Lumbini Insurance secured the second-highest premium collection. The company earned Rs. 4.50 billion, showing a 4.89% rise from the previous year’s Rs. 4.29 billion.
Siddhartha Premier Claims Third Spot
Siddhartha Premier Insurance stands third in premium earnings. The company collected Rs. 3.90 billion, which marks a 6.55% increase over last year’s Rs. 3.66 billion. This growth reflects strong customer trust and strategic market expansion.
Oriental Insurance Sees Highest Growth Rate
Oriental Insurance Company achieved the highest growth rate among all companies. Its premium collection jumped by 38.18%, reaching Rs. 2.42 billion from Rs. 1.75 billion last year. This strong performance reflects effective outreach and improved service offerings.
Other companies with notable growth include:
Nepal Insurance: 31.52% growth (Rs. 1.84 billion)
NLG Insurance: 21.34% growth (Rs. 2.74 billion)
Himalayan Everest Insurance: 8.62% growth (Rs. 3.51 billion)
IGI Prudential Insurance: 6.61% growth (Rs. 3.39 billion)
Sanima GIC: 6.47% growth (Rs. 2.36 billion)
These companies show a consistent upward trajectory in premium growth.
Market Expansion Supported By Digital Services
The rise in gross premiums indicates a growing demand for non-life insurance products. More Nepali citizens and businesses are investing in health, vehicle, and property insurance. Digital onboarding, mobile claims processing, and wider agent networks are supporting this growth.
Several companies have also expanded their service outreach through new branches and online policy issuance.
Two Companies Face Declining Business
Despite overall growth, two insurers recorded negative performance. Rastriya Beema Company, a government-owned firm, saw a 14.14% drop in premiums. It collected Rs. 1.31 billion, down from Rs. 1.53 billion last year.
National Insurance also faced a 4.11% decline, earning Rs. 977 million in premiums compared to last year’s Rs. 1.02 billion. Analysts suggest internal inefficiencies and poor marketing could be major reasons for the drop.
More Top Performers In The Sector
Other insurers with significant market shares include:
Neco Insurance: Rs. 2.95 billion (2.59% growth)
United Ajod Insurance: Rs. 2.41 billion (1.32% growth)
Prabhu Insurance: Rs. 1.57 billion (0.94% growth)
These companies are expanding steadily, though at a slower pace compared to the top five.
Summary: Strong Outlook For Non-Life Insurance In Nepal
In summary, Nepal’s non-life insurance industry continues to grow. 12 out of 14 companies recorded positive growth by the end of Jestha 2081. The top performer in volume remains Shikhar Insurance, while Oriental Insurance leads in growth rate.
The rise in insurance awareness, digital transformation, and competitive product offerings are pushing the market forward. However, companies with declining business must reevaluate their strategies to stay competitive.
The sector’s overall health appears strong, with plenty of opportunities for insurers who can adapt and innovate.
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