September 28: Non-life insurance companies earned insurance premiums of Rs 3.3 billion in the Nepali month of Bhadra (mid-August to mid-September) in the current fiscal year (FY). This figure is 8.8 percent less than the premiums collected in the corresponding period of last FY.

According to the Nepal Insurance Authority, the companies collected Rs 3.39 billion in insurance fees in mid-August to mid-September 2023. Experts in the insurance sector say that there is no progress in the insurance business at present.

In the review month, non-life insurance companies have issued 195,257 insurance policies worth Rs 835 billion. As of mid-September in the current FY, insurance companies have collected Rs 7.8 billion in insurance fees.

Chunky Chhetri, president of Nepal Insurers Association and Chief Executive Officer of Sagarmatha Lumbini Insurance Company, says that there is currently no growth in the insurance sector.

"The chain effect of the recession has also affected the insurance sector," he said, adding, "Currently the vehicle business has not been able to gain pace."

According to Chhetri, imports-exports have also decreased. There is also a situation where banks and financial institutions have not been able to invest. Its chain effect has fallen on non-life insurance business.

Two small non-life insurance companies, which have been operating since last July, earned Rs 300,000 in insurance fees in the review month. In the review month, Nepal Micro Insurance Company Limited collected Rs 213, 000 and Protective Micro Insurance Company Limited collected 87,000 in insurance fees. The two insurance companies issued 87 insurance policies worth Rs 12.16 million.

Naresh Kumar Rokka, Chief Executive Officer of Rotative Micro Insurance, says that his company is currently expanding its services. According to Rokka, the company is planning to expand 15 branches in all seven provinces before Dashain.