NEWBIZ REPORT

Kathmandu, August 7

The business of life insurance companies increased by about 10 percent in the last fiscal year (FY), 2023/24. According to the Nepal Insurance Authority (NIA), life insurance companies collected Rs 156.33 billion from the sale/renewal of 13.744 million insurance policies. Compared to the previous year, the insurance fee collected during last year is 9.82 percent higher. In the year 2022/23, they collected Rs 142.35 billion from the sale/renewal of 14.137 million insurance policies.

Insurance policy renewal plays a significant role in the business expansion of companies. In 2023/24, the insurance companies collected Rs 121 billion in insurance fee only from renewal of insurance policy.

Nepal Life Insurance Company topped the list of companies in insurance fee collection. It collected Rs 37.17 billion in insurance fees in 2022/23 and Rs 40.85 billion in 2023/24. Similarly, Sun Nepal Life Insurance collected the lowest insurance fee of Rs 3.88 billion last year, which was Rs 3.78 billion in 2022/23.

Including the micro life insurance companies as well, the total insurance fee collection last year increased by 9.94 percent compared to the previous year. Adding the micro life insurance company as well, the insurance companies collected Rs 142.35 billion in insurance premiums in the previous year, which increased to Rs 156.50 billion last year.

Among the micro insurance companies, Crest Micro Life collected the highest premium. Crest collected Rs 9.76 billion from the sale of 58,866 insurance policies last year.

President of Life Insurers’ Association, Nepal and Chief Executive Officer of Citizens Life Insurance, Poshak Raj Paudel says that the impact of the recession in the economy also affected the business of insurance companies, so the business growth was not impressive last year. 

He said, “When the economic activities increase, the income of common people increases and the business of insurance companies also expands.”