Kathmandu: The business growth of life insurance companies comes to contraction by the end of the third quarter of the current financial year 2079-80. Contrary to the growth of 9.25 percent in the first three quarters of last FY 2078-79, life insurance companies could manage a nominal increase of 1.11 percent in total premium income in the same period of the current FY.
According to Nepal Insurance Authority, 17 life insurance companies accumulated a total of NPR 1 trillion in insurance premiums including the first premium income from new business generation by the end of the third quarter. Such income was NPR 99 billion during the same period of last FY.
Out of the 17 life insurance companies, 9 insurance companies could not maintain their business to the third quarter’s business of last FY. Accordingly, policy surrender counts to 45 percent of the first insurance premium income of life insurance companies.
Industry experts opine that if the trend continues, insurers could not achieve their business targets indeed most of the insurers will fall in trouble amid negative growth rate.