Insurance Access Reaches Record 48.33% in Nepal

Kathmandu — Access to Insurance in Nepal has reached an all-time high of 48.33 percent, marking an increase of 5.06 percentage points compared to the previous fiscal year, according to the latest data released by the Nepal Insurance Authority.

As of the end of Ashar 2082, nearly half of the country’s population is covered by life insurance. This is a significant improvement from the previous year, when coverage stood at 43.27 percent. Despite this growth, 51.67 percent of Nepalis remain outside the life insurance net.

Historically, the highest coverage before this fiscal year was recorded in 2079/80, when access peaked at 44.38 percent. However, a slowdown in the economy led to a decline in new policyholders and an increase in policy surrenders, reducing coverage to 42.70 percent by Shrawan 2081. Recovery began in Bhadra 2081, culminating in the record-high figure this year.

The figures include term, short-term, and foreign employment life insurance policies. When such policies are excluded, only 17.70 percent of Nepalis hold life insurance. If foreign employment policies alone are excluded, coverage stands at 39.99 percent.

By the end of the last fiscal year, the number of active life insurance policies reached 15.63 million, up from 13.88 million in Ashar 2081.

The life insurance industry also recorded strong financial performance, with premium collection rising by 16.47 percent to Rs. 182.27 billion in the last fiscal year, compared to Rs. 156.50 billion in the previous year. Currently, Nepal is home to 14 life insurance companies and three micro life insurance companies.