Current Status of Insurance Business in Nepal
September 25, 2023 | Investopaper
As of Ashad’s end 2080 BS, there are 14 life insurance companies, 14 non-life insurance companies, 2 re-insurance companies, and 4 microinsurance companies operating in Nepal. Insurance business in Nepal has grown by about 2.87 percent in the last fiscal year 2079/80. According to Nepal Insurance Authority, companies have collected Rs 182.91 billion in premiums in the last fiscal year. In the previous fiscal year 2078/79, the companies had collected insurance premiums of Rs 177.81 billion.
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Life Insurance Business In Nepal
Life insurance business has grown by 2.84 percent in the last fiscal year. 14 life insurance companies have collected Rs 142.57 billion in the fiscal year 2079/80. The companies had collected Rs 138.64 billion in life insurance premiums in the previous year 2078/79.
In the fiscal year 2079/80, the life insurance companies collected Rs 31.23 billion as the first premium income. Likewise, Rs 111.11 billion has been collected as renewal insurance premium.
During this period, the companies have sold 14.13 million life insurance policies [including term and micro term life insurance polices and Foreign employment life insurance polices]. This is 7.92 percent more than the previous year.
Similarly, the foreign employment term life insurance policies have inclined by about 82.87 percent. Last year, the companies had sold 1,629,575 foreign employment insurance policies, compared to 891,113 in the same period of the previous year.
Life Insurance companies, in total, have a paid-up capital of Rs. 52.16 billion, up by 18.84 percent from Rs. 43.89 billion of the fiscal year 2078/79. The companies paid a gross claim of 58.98 billion, a rise of 12.25 percent from the previous year. In the fiscal year 2078/79, gross claim payment stood at Rs. 52.54 billion.
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Non-life Insurance Business In Nepal
In the fiscal year 2079/80, 14 non-life insurance companies have collected Rs 40.34 billion in premiums. This amount is 2.98 percent more than the previous year. According to the Insurance Authority, the companies had collected Rs 39.17 billion in premiums in the fiscal year 2078/79.
During this period, non-life insurance companies issued 2,792,516 insurance policies which is slightly higher the previous year (2,788,018).
14 Non-Life Insurance companies, in total, have a paid-up capital of Rs. 26.02 billion, up by 14.28 percent from Rs. 22.80 billion of the fiscal year 2078/79. The companies paid a gross claim of 23.52 billion, a rise of 23.33 percent from the previous year. In the fiscal year 2078/79, gross claim payment of non-life insurance companies stood at Rs. 19.07 billion.
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Insurance Penetration In Nepal
According to the Nepal Insurance Authority, insurance coverage has reached about 39.03 percent in the fiscal year 2079/80. Including the foreign employment term life insurance policies, the access to insurance has reached 44.38 percent. In the previous fiscal year 2078/79, the access to insurance was 41.39 percent (including foreign employment life insurance).
The gross premium income of insurance companies (life and non-life) is 3.40 percent of the Gross Domestic Product (GDP). In the fiscal year 2078/79, gross premium was 3.60 percent of the GDP.
Until the end of Ashad, 2080 BS, the number of branch offices of all insurance companies operating in Nepal has reached 2,801. In the previous fiscal year, the total number of branches was 3,366. Similarly, the number of employees directly employed in the insurance business has reached 11,496 from 12,031 of the previous year.
There are 277,626 insurance agents and 1,217 surveyors involved in the insurance industry. In the previous year 2078/79, there were 296,403 insurance agents and 1,240 surveyors.
In Picture
Status Of Insurance Business In Nepal- FY 2078/79
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