The Total Investment of Insurance Companies is over 6 Trillion 27 Billion, Nearly 4 Trillion Rupees reached

Two years ago purchased an insurance policy under AMB plan worth 20 lakhs and equivalent from the Salyan branch of Same Union Life Insurance Company Limited. The insured’s the company paid the claim within 11 days of submitting all the documents to the company for Dr.Giri’s death claim.

Kathmandu : The total investment of life and non-life insurance companies of the Insurance Authority is more than 6 trillion 27 billion. The total investment of life insurance fund, insurance fund, reserve fund, catastrophe fund and capital raised by life and non-life insurance companies has reached more than 6 billion. This amount is about half of the total budget of Nepal.

It is seen that the main part of the investment of insurance companies is deposited in the banks of Nepal in the form of fixed deposits. So far, it has been seen that insurance companies have invested nearly four billion rupees as deposits in banks.

Although it has been nine years since the authority issued the investment guidelines, the insurance companies have not been able to diversify their investable funds according to the investment guidelines. Insurance companies analyze the security and risk and invest in other areas because there is a risk, so a lot of money is kept in the bank’s fixed deposits.

According to the directives, insurance companies will pay 5% in savings bonds or bonds of the Government of Nepal, 40% in term deposits of Class A banks and Nepal Infrastructure Bank Limited, 5% in real estate business, 10% in ordinary shares of listed public limited companies, ‘A’, ‘B’ and ‘C’. 20 percent in preference shares and debentures of banks and financial institutions of the ‘ category,20 percent in secured debentures of listed public limited companies, 20 percent in infrastructure such as agriculture, tourism, water resources, 5 percent in mutual funds and citizen investment funds, 20 percent in fixed deposits of ‘B’ class banks and financial institutions, 20 percent in term deposits of ‘C’ class banks and financial institutions.

There is a provision to invest 10 percent in the deposit. Although the area for investment is specified in the guidelines, insurance companies have invested a large amount in the term deposits of ‘A’ class commercial banks. Apart from the term deposits of commercial banks, the insurance companies have not reached the limit according to the investment guidelines. have done

According to the Nepal Insurance Authority, life and non-life insurance companies have invested 6 trillion 27 billion rupees by the end of the year 2022/023. According to the authority, their investment in 2022/023 as increased by 18.95 percent compared to the year 2021/022. The companies invested 5 trillion 27 billion rupees in the year 2021/022.

Executive Director of Nepal Insurance Authority Rajuraman Poudel says that insurance companies are working slowly according to the investment guidelines issued by the authority.Insurance companies are investing according to the investment guidelines. However, most of the companies are investing in fixed deposits,” he said. “Companies seem to have less investment in physical infrastructure, development, construction, tourism, agriculture.

He saif that insurance companies are in the process of expanding their scope in that area as well. Recently, insurance companies have started investing in airlines, agriculture and other sectors. Paudel says that it is appropriate for the company to invest only in companies that will give reasonable returns.

Life insurance companies have invested 5 trillion 68 billion rupees in various sectors by the end of the year 2022/23. According to the authority, life insurance companies have invested 4 trillion 73 billion rupees by the end of the year 2021/022. Compared to the year 2021/022., the investment of life insurance companies increased by 20 percent in 2021/022.

Life insurance companies have invested 77 percent of the total investment in term deposits of A, B and C category banks and financial institutions and infrastructure banks licensed by Central Bank.Life insurance companies have saved 3 trillion 90 billion rupees in banks of category A, licensed by Central Bank.The second is commercial banks’ preference shares and bonds. Life insurance companies have invested 41 billion 13 billion rupees in this sector. It is seen that 40 billion 25 billion rupees will be kept in term deposits of category B.

34 billion rupees in other sectors, 21 million rupees in secured debentures of listed public companies, 11 million rupees in ordinary shares of listed public companies, 9 billion 22 million rupees in shares of investment companies, 6 billion 59 million rupees in agriculture tourism and water resources, and 6 billion 59 million rupees in term deposits of C class banks. 6 billion 33 crore rupees,3 billion 94 million rupees have been invested in Nepal government savings bonds, 1 billion 65 million rupees in mutual funds and citizens’ investment funds, 70 million rupees in fixed deposits of Nepal Purodhar Bank, and 25 million rupees in shares of unlisted public companies. Non life Insurance as same period 588,585/70

Non-life insurance companies have invested 58.85 billion rupees in various sectors by the end of the year 2022/023. According to the authority, non-life insurance companies had invested 53 billion 91 crore rupees by the end of the year 2021/022. Compared to the year 2020/021, the investment of non-life insurance companies increased by 9 percent in the year 2022/023.

Non-life insurance companies have invested 80 percent of the total investment in term deposits of A, B and C category banks and financial institutions and infrastructure banks licensed by Central Bank.Among the non-life insurance companies, they have invested 41 billion 26 million rupees in term deposits of A class banks and 5 billion 16 million rupees in B class banks.

Similarly, non-life insurance companies invested 2.87 billion rupees in ordinary shares of listed public companies, 2.66 billion rupees in preferential shares and bonds of commercial banks, 2.27 billion rupees in shares of investment companies, 1.28 billion rupees in other sectors,1.4 billion rupees in secured debentures of listed public companies, 1 billion rupees in term deposits of C class banks, 56.98 million rupees in mutual funds and citizens’ investment funds, 41.46 million rupees in pre-banking agricultural tourism and water resources, 22 million rupees in savings bonds of the Government of Nepal, has invested 53.3 million rupees in shares of unlisted public companies.