Term Life Policies Dominate Nepal’s Life Insurance Market, Accounting for Over 40% of Total Premiums

Kathmandu – Term life insurance remains the largest contributor to Nepal’s life insurance industry, accounting for more than 40 percent of the sector’s total premium income.

According to the latest data from the Nepal Insurance Authority (NIA), life insurers collected a total gross written premium of Rs 177.65 billion during the first 11 months of the current fiscal year 2025/26 (mid-June), representing a 14.50 percent increase from Rs 155.16 billion recorded during the corresponding period of the previous fiscal year.

Among all product categories, term life insurance generated the highest premium income, contributing Rs 71.61 billion, or 40.31 percent of the industry’s total business.

Advance-payment term life insurance ranked second, with premiums totaling Rs 33.36 billion, representing 18.78 percent of the market.

Children’s term life insurance secured the third-largest share, generating Rs 29.32 billion in premiums and accounting for 16.50 percent of the total business.

Meanwhile, converted term life insurance ranked fourth, contributing Rs 20.79 billion, equivalent to 12.48 percent of total life insurance premiums during the review period.

According to the Authority, other product categories also made notable contributions. Single-premium life insurance generated Rs 7.59 billion, while whole life insurance brought in Rs 3.92 billion. Foreign employment term insurance contributed Rs 3.08 billion, followed by other life insurance products at Rs 3.27 billion. Micro life insurance also accounted for Rs 3.08 billion in premiums, while pure term insurance generated Rs 1.62 billion during the first 11 months of the fiscal year.

The figures highlight the continued dominance of term-based insurance products in Nepal’s life insurance market, reflecting consumers’ preference for affordable protection-oriented policies over other life insurance offerings.