Kathmandu. The life insurance business of Nepal is dominated by three prominent companies with fifty one percent of market share. There are nineteen life insurers operating in Nepal. According to the data released by the Beema Samiti, the regulator, till the end of the current fiscal year 77/78, out of the total premium of Rupees 98.89 billion, three companies have occupied more than fifty one percent of it.
According to the Beema Samiti, the total premium income of Nepal Life Insurance, LIC Nepal and National Life Insurance amounts to Rupees 50.38 billion. This amount is 51.2 percent of the earnings for the first ten months of the current fiscal year. According to Samiti, Nepal Life has earned insurance premium of Rupees 26.84 billion with a share of 27.14 percent. LIC Nepal, one of the oldest company in Nepal Life, has earned Rupees 14.28 billion. This amount is 14.44 percent of the total premium income of life insurance companies.
Similarly, another old company, National Life Insurance, has earned Rupees 9.26 billion, accounting for 9.36 percent of the total premium income.Among the new life insurance companies, Union Life Insurance has managed to occupy 5.47 percent market share. The company has earned a total premium of Rupees 5.41 billion in the first 10 months of the current fiscal year. Mahalaxmi Life Insurance, the youngest player, has earned a total premium of Rupees 720 million. This amount is zero point 72 percent of the total premium income of life insurer.
Total premium income is the sum of the first premium income and renewal premium. The share of renewal premium of old companies may be comparatively higher than of the new companies as old companies have issued many numbers of insurance policies with huge amount of sum assured.