Kathmandu: Mandatory Foreign Employment Insurance contributes 8.49 percent to the total first premium income(FPI) of the life insurers. Life insurers have collected Rs.0.22 billion in the month of Jestha alone.
According to the Insurance Board, the FPI including foreign employment insurance(FEI) fee totals to Rs. 2.59 billion in the same month. Life insurance companies have been able to earn Rs. 2.37 billion first premium income (FPI) excluding the income from foreign employment pool in the month of Jestha alone.
Although the market share of some insurance companies is high due to the inclusion of FPI from FEI. The total market share of Sun Nepal Life Insurance is 7.21 percent. However, excluding the FEI, the market share of the company shrinks to only 1.79 percent. Guransh Life has performed poor in the month of Jestha. The company has the lowest market share of 1.30 percent. Guransh Life doesn’t collect premium from FEI.
According to the arrangement of FE Pool, insurance premium income is distributable among life insurers on a predetermined ratio. So, the income from FEI can not be held by the collecting insurer itself.
Nepal Life Insurance has the largest market share of 20.95 percent in this sector. Due to increment in the market share of new companies, the market share of Nepal Life is shrinking gradually. National Life occupies 9.89 percent of the total FPI. LIC Nepal has 8.36 percent market share in terms of FPI.
Citizen Life, which is at fourth position with a market share of 6.80 percent. Reliable Life, ranked fifth, has 5.80 percent, while Asian Life, ranked sixth, has 5.64 percent.
In the month of Jestha Prabhu Life has made significant improvement in FPI. The company has occupied a market share of 4.71 percent in the month of Jestha.