Life Insurance Premium Earnings Drops Amid Dashain Festivities

Kathmandu – Life insurance companies in Nepal reported a 6.21 percent decrease in first insurance premium earnings in Ashwin compared to Bhadra 2081 (Nepali Calendar), as stated in recent data from the Nepal Insurance Authority. In Ashwin, 14 life insurance firms earned NPR 2.41 billion in first insurance premiums, down from NPR 2.57 billion recorded in Bhadra.

This downturn aligns with a seasonal trend, as Ashwin is traditionally marked by Dashain, Nepal’s largest festival. During this time, many individuals prioritize family gatherings, religious activities, and travel to their ancestral villages, reducing their focus on business and financial commitments.

Despite the overall decline, Nepal Life led the sector, generating NPR 614.6 million in first insurance fees in October. National Life followed with NPR 365.4 million, with Suryajyoti Life and LIC Nepal ranking third and fourth, earning NPR 182.6 million and NPR 150.48 million, respectively. Other companies like Himalayan Life, Asian Life, and Sanima Life also contributed to the total earnings, albeit at lower levels.

A few companies, however, posted notable growth despite the festive slowdown. Sun Nepal Life saw the highest increase, with first insurance fee income rising by 83.66 percent compared to Bhadra, reaching NPR 104.9 million in Aswin. IME Life also experienced a sharp rise, growing by 68.24 percent, while Asian Life and Prabhu Mahalakshmi Life expanded by 41.46 and 39.07 percent, respectively.

Still, for seven of the life insurance companies, the first insurance premium income decreased in Ashwin. Companies like Nepal Life, LIC Nepal, and Suryajyoti Life were among those affected, with some seeing reductions of nearly 30 percent or more due to the seasonal effect of Dashain, underscoring the festival’s impact on business activities across the nation.