Kathmandu: The total insurance premium income (TPI) of life insurance companies has decreased by 7.52 percent in the second month of current fiscal year as compared to the same period of last fiscal year. The industry has witnessed a decline in the TPI amid the liquidity crunch in the financial market.
According the Insurance Board, 19 life insurers have earned Rs. 26.327 billion till the second month(Bhadra) of FY 2079-80. By Bhadra end of last FY, life insurance companies earned a total of Rs. 28.015 billion.
Out of the 19 life insurance companies, only 12 life insurers could increase their TPI as compared to last FY. According to the data unveiled by the Insurance Board, Guransh Life, Prabhu Life, Prime Life, Reliable Life, Met Life, LIC Nepal, and state-owned Rastriya Beema Sansthan have been failure to maintain their TPI of Bhadra end of last FY. Gurans Life, Prabhu Life and Prime Life are in the process of merger with other life insurers.
According to the Board, 19 life insurance companies have earned a total of first insurance premium incomer(FPI) of Rs 4.80 billion and 49 lakh. Nepal Life Insurance(NLIC) alone has earned TPI Rs. 7.625 billion and hardly maintained previous year’s TPI for the first two months. On last FY, NLIC’s TPI was Rs. 7.62 billion till Bhadra end.
During this period, the insurance fee of the state-owned Sansthan has witnessed a sharp decline in TPI. It’s TPI has decread by 80.67 percent. It’s has earned TPI Rs. 838.8 million only. In the same period of the last FY, Sansthan had earned TPI Rs. 4.34 billion
Similarly, the TPI has decreased by 11.55 percent of Prabhu Life, 10.51 percent of Reliable Nepal Life, 8.58 percent of Gurans Life, 4.48 percent of LIC Nepal. The TPI of Prime Life and Met Life has decreased by 0.25 and 0.10 percent respectively.