Insurance Firms Collect NPR 44.28B in Two Months; JENJI Protests Could Boost Business
Nepal’s insurance sector collected NPR 44.28 billion in two months, up 16.5% YoY, with further growth expected post-civil unrest.
In the first two months of fiscal year 2082/83 (up to Bhadra), life and non-life insurance companies in Nepal collected a total of NPR 44.28 billion in premiums, according to statistics released by the Insurance Board of Nepal (IBN). This marks a 16.49% increase over the same period last year, when companies collected NPR 38.01 billion.
Life insurance companies collected NPR 35.99 billion, a 19.34% rise from NPR 30.16 billion last year.
Non-life insurance companies collected NPR 8.29 billion, up 5.55% from NPR 7.86 billion in the previous year.
Recent natural disasters, including floods and landslides, as well as civil unrest such as the JENJI and royalist protests, caused significant property damage in Nepal. Officials note that while the total estimated losses exceed NPR 70 billion, claims filed so far total only NPR 23.22 billion, suggesting the market for insurance is still expanding.
Insurance experts expect growth in awareness and penetration as both public and private properties are increasingly being insured. Notable examples of damaged private assets include Ncell, Hilton Hotel, Chandragiri Hills, Taragaon Regency Hotel, and Bhat-Bhateni Supermarket, while government properties like the Baneshwor International Conference Center, Singh Durbar, President’s House, Prime Minister’s residence at Baluwatar, and Supreme Court buildings are also slated for coverage.
Policy highlights for FY 2082/83 (up to Bhadra):
Life insurance collected NPR 7.27 billion in first-time premiums and NPR 28.72 billion in renewal premiums, rising 27.77% and 17.38% respectively from last year.
The total number of active life insurance policies reached 15.93 million, a 15.62% increase year-on-year.
Short-term and micro-term life insurance policies increased 27.22%, and foreign employment life insurance policies grew 20.27%.
Insurance coverage now reaches 49.19% of the population, up from 42.92% last year.
The data indicates that despite civil unrest and natural disasters, Nepal’s insurance sector continues to grow, with both policy numbers and total premiums increasing steadily.