Kathmandu: The market share of the top five non life insurance companies alone is above 46 percent. Shikhar Insurance, Neco Insurance, Sagarmatha Insurance, Everest Insurance and Sidhhartha Insurance cover almost half of the total market share in terms of number of policies. Similarly, the majority of market share in terms of premium earning too is limited to few numbers of non-life insurers.
Non-life insurance companies have sold 2.731 million policies in the last fiscal year 2077/78. By selling the policy, the companies have managed to earn insurance premium of Rs. 31.70 billion.
Last year, the largest number of Neco insurance companies issued 32,712 policies. NECO alone has a market share of 11.08 percent. But in terms of premium collection, Neco is in the third place. The company has earned Rs. 2.41 billion insurance premium.
Shikhar Insurance has sold 271,116 policies. The company has a market share of 9.92 percent in terms of number of policies. The company has earned Rs. 3.97 billion in insurance premiums. It leads the market with highest share in premium earning.
Sagarmatha Insurance Company is ranked third in terms of number of policies. Everest has sold 237,000 policies. The company has earned Rs. 2.65 billion in insurance premium. Everest ranks second in terms of insurance premium earning.
Similarly, NLG Insurance Company is ranked fourth in terms of number of insurance policies. The company has a market share of 8.28 percent. Similarly, Siddhartha Insurance Company is at number five. The company has sold 218,000 policies.
Prudential Insurance Company, ranked sixth in terms of number of policies, has a market share of only 5.63 percent. Similarly, the seventh-ranked Premier has 5.58 percent. The remaining companies are Nepal Insurance 5.41 per cent, Lumbini General 5.30 per cent, United 4.94 per cent, IME General 4.77 per cent, Ajod 4.69 per cent, Everest 3.71 per cent, Prabhu Insurance 3.52 per cent and Himalayan. General has a market share of 3.52 per cent, General Insurance 2.63 per cent, Sanima General 2.60 per cent, The Oriental 1.21 per cent and National Insurance 0.64 per cent in terms of number of policies.
While 5 out of 20 non-life insurance companies hold half the market, the remaining 15 companies have to share the very tiny pie of market share. The non-life insurance business is run by corporate relations. The corporate houses have their own insurance companies. They are doing business in their own company. As limited corporate houses run their own banks, insurance companies and businesses, only limited companies have been able to hold major chunk of the non-life insurance business.