Insurance Policy Surrenders Cross NPR 10 Billion by Third Quarter; 1.22 Million Policies Lapse

Kathmandu, April 2026 — The total value of life insurance policy surrenders has exceeded NPR 10 billion by the end of the third quarter of the current fiscal year.

According to the latest “Insurance Snapshot” published by the Nepal Insurance Authority, life insurance companies paid out NPR 10.49 billion in surrendered policies during this period.

However, the amount is 5.42 percent lower than in the same period of the previous fiscal year, when surrender payouts stood at NPR 11.09 billion.

The number of policyholders surrendering their policies has also declined. By mid-April last year, a total of 80,187 policies had been surrendered. In the same period this year, the number fell to 68,855, a decrease of 14.13 percent.

Meanwhile, the value of lapsed policies, meaning those that were not renewed, has increased by 2.97 percent. It rose from NPR 36.87 billion in the same period last year to NPR 37.73 billion this year.

However, the number of lapsed policies has slightly decreased by 1.67 percent. During the review period, 1,225,454 policies were not renewed, compared to 1,246,301 in the same period last year.

Overall, while the rate of policy surrenders has declined, both the number and value of lapsed policies continue to rise.