Insurance Companies' Gross Premiums Climbed By 14.65% (Y-O-Y)

In any country, the development and growth of the insurance business are dependent on current economic conditions and prospects. In general, there is a positive relationship between a country's economic progress and the amount of money people spend on insurance. In addition, the overall price level, the price of insurance services, risk aversion, and special social and political factors of a country all influence insurance demand. In Nepal, the demand for insurance policies has increased throughout the years.

Let's compare the performance of the insurance industry during the first ten months of the fiscal year 2078/79 to the same time of the previous year.

Monthly Insurance Business Statistics

As of Baishakh End, 2079 (Mid-May, 2022)

Source: Beema Samiti 

The insurance industry's monthly business data suggest a positive picture for Nepal's insurance sector. In the first 10 months of the fiscal year 2078/79, insurance companies' gross premiums climbed by 14.65 percent.

Life insurance companies collected a gross premium of Rs. 1.10 Kharba till Baisakh of the current fiscal year, out of a total active number of insurance contracts of 12,371,691. Non-life insurance companies, on the other hand, earned Rs. 3.1 Arba in premiums from their 2,348,232 subscribers.

The life insurance industry has seen substantial expansion since the covid epidemic. The business has the potential to produce a big number of life insurance issuers. As seen in the data, Life insurance policies have climbed by 47.32 percent year over year.

Despite the fact that the number of non-life insurance policyholders has decreased by 1.39 percent compared to the same period last year, the gross premium has increased by 26.71 percent, indicating a positive outlook on the non-life insurance business in Nepal, which is seeing a large increase in the middle-class population as well as an increase in the number of educated youths.