Insurance Industry’s Contribution to National Financial System above 6pc

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Kathmandu: The contribution of insurance industry into the national financial system has reached 6.64 percent. According to the study report unveiled by Nepal Rastra Bank(NRB), central bank of Nepal, the total assets of the insurance industry in the financial system has reached Rs.542.65 billion during last financial year 2077/78(2021-22).

There are 2 re-insurers, 20 non-life insurers and 19 life insurers licensed by Insurance Board of Nepal. Except these 41 companies, state’s Health Insurance Board also delivers services similar to the insurance companies.

According to NRB, the size of the financial system has crossed Rs. 81.74 billion in last financial year. Among the various institutions of the financial system, commercial banks are the largest contributor. Of the total financial system assets, the assets of commercial banks accounted for 66.31 percent. The total assets of all commercial banks have reached Rs. 54.20 trillion by the end of 2077/78. Similarly, the contribution of development bank to the size of overall financial system was 6.38 percent and the contribution of microfinance was 5.45 percent. Banks and financial institutions that have obtained license from the central bank have contributed 79.99 percent in the total financial system.

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