Foreign Employment Boosts Growth of Term Life Insurance in Nepal
Kathmandu — The expanding wave of foreign employment among Nepalis is fueling significant growth in the country’s term life insurance sector. As more citizens leave the country in search of better job opportunities abroad, the demand for mandatory foreign employment insurance has surged, driving up the overall premium collection in this segment.
According to data collected up to end of Baisakh (Mid-May) of the current fiscal year, life and micro life insurance companies have earned a total of Rs. 2.88 billionin premiums from foreign employment insurance policies. Eleven life insurance companies and three micro life insurers have been active in this domain, reflecting the increasing reliance on term insurance for safeguarding the lives of migrant workers.
Among the major insurers, Sun Nepal Life Insurance has taken the lead by collecting Rs. 986.2 million in premiums. The company issued over 879,000 insurance policies during the review period. Close behind, Asian Life Insurance secured the second position with Rs. 764.4 million in premiums from 254,000 policies.
Nepal Life Insurance eraned the premium income of Rs. 201 million. The company stood out by issuing 578,000 policies, making it the highest in terms of coverage in the domestic insurance market.
Other companies such as IME Life (Rs 203.1 million), National Life (Rs 168.9 million), Sanima Reliance Life (Rs140 million), Suryajyoti Life (Rs 101.4 million), Citizen Life (Rs 101.4 million), Reliable Nepal Life (Rs 97.7 million), and Prabhu Mahalaxmi (Rs 90.3 million) recorded substantial earnings from foreign employment insurance. Even micro life insurance providers such as Liberty Micro Life, Crest Micro Life, and Guardian Micro Life have contributed, with Liberty earning Rs. 13.5 million, Guardian Rs. 3.8 million, and Crest Rs. 800,000.
The rising trend of labor migration continues to shape Nepal’s insurance landscape, with term life insurance becoming an essential financial tool for migrant workers and their families.