Insurance Progress in Nepal: Growth Seen but Gaps Remain

Kathmandu — Despite economic challenges and structural hurdles, Nepal’s insurance sector has managed a modest yet notable growth in outreach. According to the latest report by the Nepal Insurance Authority, insurance coverage has increased by 3.83 percent, bringing the total insured population to 47.39 percent.

The Authority’s findings, published in the second edition of its annual bulletin ‘Insurance Reflection’, highlight both progress and persistent gaps in the sector. While the incremental rise indicates continued efforts to bring citizens under insurance protection, a significant 53 percent of the population remains uninsured, underscoring a major gap in social security and financial risk mitigation.

The data encompasses all forms of insurance, including term, short-term, and foreign employment life insurance. The Authority has calculated these figures by projecting the national population based on the 2078 BS Census growth rates provided by the National Statistics Office.

Currently, 12,163 employees serve across Nepal’s insurance industry, with life and non-life insurance companies employing 6,087 and 6,075 personnel, respectively. These professionals are responsible for extending services across the country, often in remote areas where awareness of insurance benefits remains limited.

In recent years, the scope of insurance has gradually expanded across Nepal. Both the government and the Insurance Authority have been proactive in promoting insurance literacy through grassroots-level campaigns, public information drives, and educational initiatives. However, authorities acknowledge that despite these efforts, more than half of Nepal’s population still lacks access to basic insurance services.

Insurance is increasingly being recognized as a vital safety net for individuals and families, especially in the face of natural disasters, health emergencies, and economic instability. Yet, the slow pace of inclusion reveals the need for more targeted policies, inclusive products, and stronger regulatory coordination.