Insurance penetration in Nepal as of Falgun 2075 at 18%; 2009 branches of Insurance companies contributing 2.6% of GDP

The insurance sector of Nepal is budding and for that reason is flush with competition. As of Falgun end 2075, there are 19 life insurance companies, 20 generaal (non-life insurance companies) and 1 reinsurance company making of total of 40.

According to the economic survey presented by Ministry of Finance (MoF), the total financial sources & uses of the insurance industry has increased by 30.5% from last year. As of Falgun end FY 2075/76, this value stands at Rs 3 kharba 13 arba 89 crore out of which Rs 2.3 kharba is from Life Insurance sector and Rs 83.22 arba is from General Insurance sector.

Likewise, the companies have also increased the total insurance premium collected amounting to Rs 77.88 arba, which is in fact 2.6% of the total Gross Domestic Product (GDP).

Beema Samiti, when asked isn't 40 insurance companies too many for Nepal, often argued that higher number meant competition and that meant the companies will have to diversify product-wise and geographically too. Turns out, the strategy has played well. As of Falgun end FY 2075/76, the insurance penetration of Nepal has reached 18% and according to the estimates this figure will likely hit 20% by the end of this fiscal year.

This penetration has been achieved by gradual expansion of Insurance companies via branches. Currently, there are a total of 1290 branches of Life insuarance companies and 719 branches of General Insurance companies making a total of 2009 branches all over the country. However, if we see the province wise figures, the Karnali Province seems neglected with a lowest reach of only 126 branches throughout the province.

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FM Dr. Khatiwada presents economic survey for 2075/76; Preliminary growth estimate of 7%