Insurance Sector Employs Over 12,000 Amid Expanding Market and Premium Growth

Kathmandu – Nepal’s insurance industry has emerged as a key employment generator, with over 12,000 individuals currently working across 37 life and non-life insurance companies. According to data released by the Nepal Insurance Authority, 12,234 employees were engaged in the sector as of the end of Jestha (mid-May to mid-June) of the current fiscal year—6,111 in life insurance and 6,123 in non-life insurance.

Despite economic challenges and company mergers slowing the employment surge, the sector continues to show steady improvement. Companies have been expanding their networks, with 3,070 provincial branches and sub-branches now operating nationwide—1,850 from life insurers and 1,157 from non-life firms.

Insurance penetration has also risen. The insured population grew from 43.95% to 47.95% year-on-year. As of the review period, 15.49 million active insurance policies are in force—6.18 million life insurance and 2.93 million in non-life insurance. This growth is credited to intensified awareness campaigns by the Insurance Authority and mandatory policies such as vehicle insurance.

Insurance premium income reached Rs. 195.41 billion, up 14.51% from the previous fiscal year. Life insurance contributed Rs. 155.15 billion, including Rs. 35.17 billion in first premiums and Rs. 191.98 billion in renewal premiums. Non-life insurers generated Rs. 39.88 billion.

The government’s emphasis on insurance, combined with rising financial and educational literacy, has driven greater public engagement. Insurers continue to invest aggressively in branch expansion and workforce development to capitalise on the growing demand.