Kathmandu: The insurance premium income of non-life insurance companies has decreased by 25.78 percent in the month of Baisakh as compared to Chaitra. The downturn in the national economy has had an impact on non-life insurance companies’ premium earnings.
The chief executive officer of an insurance company said that the business witnessed fall amid the economic downturn. Companies are finding it difficult to retain their existing business. He admitted that the growth rate has come to a halt due to lack of enough new business.
Non-life insurance companies have earned Rs. 2.52 billion in insurance premiums in the month of Baishakh alone. The companies had earned Rs 3.40 billion in the Chaitra. The number of insurance policies has also dropped sharply. Of the 256,000 insurance policies issued in Chaitra only 161,000 have been sold in Baisakh.
In the month of Baishakh, Shikhar Insurance alone has earned the highest amount of Rs. 402 million while Himalayan Insurance earned Rs. 250 million. The NECO Insurance has earned Rs 175.4 million. Similarly, the fourth-ranked Everest Insurance has earned Rs 166.7 million. However, the business of Shikhar Insurance was Rs 600 million in Chaitra.Its premium income dropped by 30 percent.
While the business of most of them is declining, the business of Sanima Insurance, Everest Insurance and Himalayan Insurance has surged. Both Himalayan and Everest, which are in the process of merger, have witnessed an improvement in their business.
Compared to Chaitra, the business of state owned Rastriya Beema Sansthan has declined by 60 percent.