Kathmandu: The last decade proved a glorious decade for the domestic insurance industry. It witnessed a deeper insurance penetration, the emergence, and merger of insurance companies, the establishment of two new reinsurers, and seven micro insurance companies.
The execution of new regulatory capital compelled many insurance companies to opt for the merger as a result, eight general insurers merged into four and some more are in the process of merger. The reinsurance companies, state-owned Nepal Re-insurance Company, and private-sector Himalayan Re-insurance Company emerged in the decade of 70s.
A y-o-y growth rate of 20 percent realized in the life insurance business., be seen every year. During the last decade, the maximum growth rate was 39 percent and the minimum was 14 percent. During the period, population coverage of insurance reached 31 percent from 6 percent.
The government of Nepal issued the license of 10 new life insurance companies and the life insurance business brought a good stir in the market. In a decade, life insurance companies have earned 6 trillion 86 billion rupees in insurance fees from the insured.
The addition of 10 new life insurance companies and two general insurance companies in the decade accelerated the coverage of insurance. In a decade, life insurance companies collected a total of NPR 6.86 trillion in insurance premiums. Non-life insurance companies earned NPR.5 trillion in insurance premiums.
The Government has arranged the exclusion of life insurance premiums up to NPR 40,000 in the calculation of tax-deductible income. The state has provided 80 percent subsidy on agriculture and livestock insurance. The coverage of health insurance program under social security program is also expanding.
