Insurance Access in Nepal Reaches 44.64%, Majority Still Uncovered
Kathmandu — Access to insurance coverage in Nepal has climbed to 44.64% of the population, according to the latest data from the Nepal Insurance Authority (NIA). Despite the progress, more than half citizens still lack insurance access.
As per NIA records updated by end of Chaitra (mid-April), 55.36% of Nepalese remain outside the reach of any insurance scheme. The government has made certain policies mandatory — notably, foreign employment term insurance and third-party vehicle insurance. These compulsory programs contribute heavily to the overall access numbers.
Excluding short-term, temporary, and foreign employment-related policies, the actual access to life and non-life insurance drops to 16.48%. Even when only foreign employment life insurance is excluded, access is measured at 36.65%.
Despite these nuances, this year’s figures show a slight improvement from the end of fiscal year 2079/80 (FY 2022/23), when insurance coverage had peaked at 44.38%. However, that momentum had stalled amid economic headwinds, leading to fewer new policyholders and a surge in policy surrenders. The decline bottomed out at 42.70% by Shrawan 2081 (mid- August, 2024).
By end of Chaitra (mid- April), active life insurance policies totaled 1,439,573. The NIA credits the growth to several factors, including the rise of microinsurance providers, increased local outreach efforts, and market expansion strategies adopted by insurance companies. Public interaction programs organized by the Authority have also played a role in raising awareness.
In tandem with access, business in the life insurance sector has seen notable growth. In the first nine months of the current fiscal year, life insurance premiums reached Rs. 127.036 billion which is a 15.32% rise compared to Rs. 100.161 billion collected during the same period last year.
At present, Nepal’s insurance market comprises 14 major life insurance companies and three micro-life insurance firms.