Life Insurance Companies Spend Over Rs 14.80 Billion on Agent Commissions in FY 2081/82

Kathmandu — Life insurance companies in Nepal collectively spent more than Rs 14.80 billion on agent commissions in the last fiscal year (FY 2081/82), marking a 14.07 percent increase compared to Rs 12.98 billion in the previous year, according to industry data.

Among the 14 life insurers, Nepal Life Insurance led the spending with Rs 3.66 billion paid to agents, followed by National Life at Rs 2.18 billion and LIC Nepal at Rs 1.47 billion. Other major expenditures included Himalayan Life with Rs 1.46 billion, SuryaJyoti Life at Rs 1.28 billion, Asian Life at Rs 810.7 million, Citizen Life at Rs 725 million, and Sanima Reliance Life at Rs 718.6 million.

Similarly, Reliable Nepal Life spent Rs 536.2 million, Prabhu Mahalaxmi Life Rs 536.6 million, MetLife Rs 528 million, IME Life Rs 527.3 million, Sun Nepal Life Rs 425.5 million, and Rastriya Jeevan Beema Company Rs 189.9 million.

In terms of growth, Sun Nepal Life recorded the highest increase in commission expenses at 30.39 percent compared to the previous fiscal year. This was followed by National Life (29.40%), SuryaJyoti Life (17.52%), Nepal Life (15.25%), IME Life (14.65%), Citizen Life (12.37%), Asian Life (11.43%), and Reliable Nepal Life (10.13%).

Meanwhile, Sanima Reliance Life raised its agent commissions by 10.03 percent, MetLife by 8.59 percent, Prabhu Mahalaxmi Life by 8.40 percent, LIC Nepal by 5.97 percent, Himalayan Life by 5.59 percent, and Rastriya Jeevan Beema Company by 2.22 percent.