Kathmandu: Management expenses of life insurance companies have increased by 29.5 percent in the Q1 of current fiscal year. Life insurance companies have spent Rs. 2.61 billion comparing to Rs. 2.2 billion in the corresponding period of the last fiscal year.
Expenses are also increasing along with the business expansion of life insurance companies. Insurance companies are increasingly opening branches in districts and cities outside the Valley.
The management expenses of Reliable Nepal Life Insurance Company has surged by 160 percent to Rs. 146.3 million. Similarly, Citizen Life’s management expenses has increased by 82 percent to Rs. 199.9 million. The management costs of most new life insurance companies seem to be increasing.
Guransh Life’s management expenses decreased by 9.22 percent in Q1. The management cost of the new company Mahalakshmi Life Insurance Company has also increased by only 3.64 percent. Such expenses of the company are only Rs. 55.8 million. The management cost of Asian Life has increased by 6.93 percent.
Nepal Life, which has always been aggressive in business expansion, has not seen much increase in management expenses. It remained within 8.13 increase as compared to last FY. The company’s total management expenditure is only Rs. 218.1 million.