Kathmandu: Insurance companies have invested more than Rs. 41 billion in agriculture, tourism, and water resources, which have been identified as priority sectors by the Government of Nepal. Life and non-life insurance companies have invested a total of Rs. 41.38 billion in these sectors till Chaitra end(mid-April) of the current fiscal year.
Only 8.09 percent of the total investment till the third quarter of the current Fiscal Year 2078/79 has been invested in agriculture, tourism, and water resources. Although these investments have been made under the heading of investment in the agriculture, tourism, and water resources sector, most of the investment has been in hydropower projects and limited investment in the tourism sector. Investment in agriculture is negligible.
According to the ‘Investment Directive for Life and Non-Life Insurers 2071’ issued by the Insurance Board, up to 20 percent of the total investment can be allocated to the aforementioned sectors. As per the data till Chaitra, it has the potential to invest Rs. 100 billion for the construction of infrastructure in priority sectors including agriculture, tourism, and water resources.
However, an additional 12 percent or Rs. 60 billion can be invested in this sector yet. According to the Insurance Committee, the investment of life insurance and non-life insurance companies has exceeded Rs. 511 billion by the third quarter of the current fiscal year. Life insurance companies account for 89.67 percent of the total investment of life and non-life insurance companies.