Insurance Companies in Nepal Spend Over Rs 5.6 Billion on Employee Benefits
Kathmandu – Insurance companies operating in Nepal have collectively spent over Rs 5.6 billion on employee benefits, including salaries and allowances, up to the end of the current financial year. According to the second-quarter financial reports published by these companies, the amount was utilized for the service benefits of 11,498 employees across 14 life insurance companies, 14 non-life insurance companies, and seven micro-insurance companies.
The expenditure covers various employee benefits, such as training, travel, bonuses, wages, and other facilities. Additionally, a portion of the funds has been allocated for annual and semi-annual performance reviews, as well as business meetings.
Life Insurance Companies’ Expenditure
Life insurance companies accounted for Rs 3.12 billion of the total employee expenses. Currently, 5,808 employees are engaged in 14 life insurance companies, with personnel costs rising by 7% compared to last year. Among these, Himalayan Life Insurance reported the highest employee expenses at Rs 472.4 million, reflecting a 9.98% increase from the previous year.
Other significant expenditures include Nepal Life Insurance at Rs 365.6 million, SuryaJyoti Life Insurance at Rs 328.9 million, National Life Insurance at Rs 246.5 million, and Sanima Reliance Life Insurance at Rs 230.5 million. Meanwhile, IME Life Insurance recorded the highest percentage increase in staff expenses, surging by 39.64% compared to last year. Employee costs rose in 11 life insurance companies, while three reported a decline.
Non-Life Insurance Companies’ Expenditure
Non-life insurance companies allocated Rs 2.32 billion for employee expenses. The Nepal Insurance Authority reported that this amount covered the wages and benefits of 5,680 employees working in non-life insurance firms.
Sagarmatha Lumbini Insurance topped the list with employee expenses of Rs 262.3 million. Similarly, Siddharth Premier Insurance and Shikhar Insurance each spent Rs 259.9 and Rs 255.2 million respectively. IGI Prudential Insurance Rs 215.7 million, Neco Insurance Rs 190.1 million, and United Ajod Insurance Rs 181.8 million.
During this period, eight non-life insurance companies saw an increase in employee expenses, with the government-owned Rastriya Beema Company experiencing the most significant decline, at 62.40% compared to last year.
Micro-Insurance Companies’ Expenditure
The seven micro-insurance companies operating in Nepal collectively spent Rs 156.3 million on employee benefits. Crest Micro Life Insurance reported the highest staff expenses, amounting to Rs 270 million.