Life Insurance Companies’ Agent Commission Expenses Rise 12%, Which Company Spent How Much?

Kathmandu — The commission expenses paid by 14 life insurance companies to their agents for business generation have increased by 12.04 percent in the third quarter of the current fiscal year 2025/26 (2082/83).

According to the financial statements published by the companies, the total agent commission expense of the sector reached NPR 11.04 billion during the review period. In the same period of the previous fiscal year, such expenses stood at NPR 9.85 billion.

Nepal Life Insurance remains the highest spender on agent commissions. The company incurred NPR 2.73 billion in agent commission expenses up to the third quarter, compared to NPR 2.41 billion in the same period last year.

National Life Insurance followed with NPR 1.62 billion, while LIC Nepal spent NPR 1.07 billion and Himalayan Life Insurance incurred NPR 1.04 billion in agent commissions. Similarly, SuryaJyoti Life spent NPR 7.4 billion, Asian Life NPR 5.97 billion, Citizen Life NPR 5.62 billion, and Sanima Reliance Life NPR 5.41 billion.

Likewise, IME Life spent NPR 4.36 billion, Reliance Nepal Life NPR 4.22 billion, MetLife NPR 4.14 billion, Prabhu Mahalaxmi Life NPR 3.96 billion, and Sun Nepal Life NPR 3.16 billion on agent commissions. The National Life Insurance Company recorded the lowest commission expense at NPR 1.43 billion.

In terms of growth rate, IME Life posted the highest increase in agent commission expenses at 29.90 percent, followed by Reliance Nepal Life at 17.61 percent, Citizen Life at 17.48 percent, and Sanima Reliance Life at 15.41 percent.

The lowest growth was recorded by National Life Insurance Company at 2.08 percent.