Life Insurance Companies Distribute Rs 6.5 Billion in Agent Commissions

Kathmandu – Life insurance companies in Nepal have distributed approximately Rs 6.27 billion as commissions to their agents in the current financial year, marking a 7.13 percent increase from the previous year’s figure of Rs 5.85 billion, according to the financial statements published by these companies.

Nepal Life Insurance led the sector in agent commission distribution, providing Rs 1.63 billion to its agents, an increase of 9.82 percent compared to the previous year. National Life Insurance secured the second position in terms of agent commissions with Rs. 835.5 million, while LIC Nepal distributed Rs 656.4 million to its agents. SuryaJyoti Life Insurance provided Rs 441.7 million, followed by Asian Life Insurance with Rs 352.5 million and Sanima Reliance Life Insurance with Rs 310.5 million.

Other notable distributions include Reliable Nepal Life with Rs 241.3 million, Met Life with Rs 237.6 million, Prabhu Mahalakshmi Life with Rs 232 million, IME Life with Rs 220.2 million, and Sun Nepal Life with Rs 187.5 million. Additionally, Citizen Life Insurance distributed Rs 166.9 million, while Rastriya Jeevan Beema Company disbursed Rs 950.1 million in agent commissions.

Sun Nepal Life Insurance recorded the highest growth in agent commissions, with a 25.85 percent increase from the previous year. Suryajyoti Life Insurance followed with a 16.71 percent rise, while Reliable Nepal Life reported a 10.39 percent growth and other companies registered increases below 10 percent. Notably, out of 14 life insurance companies, 12 witnessed growth in agent commissions, while LIC Nepal and Met Life experienced slight declines.

Life insurance agents typically earn commissions of 25 percent of the premium in the first year, 15 percent in the second year, and 5 percent annually for the next eight years for selling life insurance policies.