NIA Directs Insurers to Include All Premium Categories in Business Targets

Kathmandu – The Nepal Insurance Authority (NIA) has directed life insurance companies and micro life insurers to incorporate all premium categories—including first, renewal, and term life insurance premiums—when setting business targets for the upcoming fiscal year.

In a circular issued to all life and micro life insurance companies, the Authority has made it mandatory to consider renewal and term insurance premiums alongside first premiums while determining monthly, quarterly, half-yearly, and annual performance goals for subordinate employees, departments, provincial offices, branches, and sub-branches.

The NIA stated that this move addresses long-standing complaints that insurers were prioritizing endownment and single premium policies in their business planning. Such practices, the Authority noted, have led to several challenges including the neglect of low-income groups, premature policy surrender, and a growing gap in the delivery of quality and sustainable insurance services.

By including all premium types in performance benchmarks, the Authority aims to promote more balanced insurance growth, improve policy retention, and extend access to reliable insurance services across all income levels.