Life Insurance Policies Sees Significant Drop in Falgun

Kathmandu — Life insurance companies in Nepal issued 419,000 new insurance policies in the month of Falgun, but the number of active policies saw a decline compared to the previous month. According to data from the Insurance Authority, the total number of active life insurance policies dropped from 13.407 million in the month of Magh to 13.406 million in the month of Falgun — a decrease of 39,000 policies.

In Magh, life insurance companies had issued 428,000 new policies. However, despite the issuance of 419,000 new policies in Falgun, the net increase in active policies was only around 40,000. This suggests that a significant number of policies have either lapsed, been surrendered, or have not been renewed on time, according to insurance agents.

The Insurance Authority’s data further reveals that approximately 379,509 insurance policies have become inactive in this manner. Agents have attributed the decline to policyholders failing to make payments on time or choosing to surrender their policies.

Source: Nepal Insurance Authority