Nepali Insurance Sector Sees Steady Growth in Employment and Coverage

Kathmandu – Nepal’s insurance sector has emerged as a key area for employment and financial growth, with over 12,000 people currently employed in 37 operating insurance companies. According to the Nepal Insurance Authority, a total of 12,095 employees were working in insurance companies until end of Falgun month (mid-March) of the current fiscal year, with 6,074 employed in life insurance companies and 6,021 in non-life insurance companies.

The increasing scope of insurance in Nepal has been supported by government initiatives and awareness programs conducted by the Insurance Authority at the local level. These efforts have led to a gradual rise in insurance coverage. As of the previous month the population covered by insurance, including both term and micro-term life insurance, reached 44.17%, up from 43.16% during the same period last year.

During the review period, there were 14.238 million active insurance policies in the country. Of these, 3.834 million were life insurance policies, while non-life insurance policies numbered 2.073 million. In terms of revenue, life insurance companies collected 23.80 billion rupees in new premiums and 85.62 billion rupees in renewal premiums. Meanwhile, non-life insurance companies earned 28.60 billion rupees during the same period.

To expand their reach, insurance companies have been establishing branch offices across the country. Currently, there are 2,992 provincial branches and sub-branches in operation, including 1,845 branches of life insurance companies and 1,147 of non-life insurance companies.

Government policies have also played a significant role in driving this growth. The introduction of mandatory vehicle insurance and increasing financial and educational awareness have encouraged more citizens to opt for insurance. Stakeholders believe that these measures will continue to strengthen the insurance sector and enhance financial security among Nepali citizens.