The Insurance Penetration rate has Decreased
Kathmandu: The insurance penetration rate has decreased. It has been shown by the data published by the Nepal Insurance Authority up to the mid of February 2024 A.D (end of Magh of 2080 B.S).
Compared to last year, the insurance penetration rate has decreased by three percent to 43.13 percent. In the same period last year, the insurance penetration companies was 44.70 percent.
Insurance officials say that the Insurance Companies penetration rate has decreased due to the economic recession and the unfavorable situation in the country.
The impact of economic recession has started to appear in the insurance sector. At this time, the data released by the insurance companies has shown that the insurance business of the company has also been greatly affected. If we look at the situation of non-life insurance companies, it has decreased by 18 percent in a month.
As a whole, the annual business of the insurance companies has increased by 2.75 percent. In which the total insurance business of life insurance has increased by 4.24 percent, while the business of Non-life insurance companies has decreased by 2.75 percent, according to the data released by the Insurance Authority.
Along with the penetration rate of the Insurance Companies, offices of the companies have also decreased. Insurance Companies’ branches have decreased by 9.25 percent in the last one year. At present, the number of offices of insurance companies is 2,894. In the same period last year, there were 3,189 insurance offices.
Along with the office, the number of employees working in the insurance sector has also decreased. At the end of Magh of last fiscal year, the number of employees working in the insurance sector was 11,534. Currently, 11,472 people are working in insurance companies which shows that the amount of workers has decreased by 0.57 percent. Out of which, the life insurance company has reduced the number of employees by 2.29 percent. On the Non-life insurance side, the number of employees has increased by 1.25 percent.