Kathmandu: The life insurance industry witnessed a negative growth in new business income during the last financial year 2079-80. The life insurers witnessed negative growth amid economic slow-down and high inflation rate.
The industry average negative growth rate remained at 24.73 percent. All 14 life insurers suffered negative growth in the range of 1.13 to 50.39 percent. According to the data unveiled by the Nepal Insurance Authority, the new business premium collection of last FY was limited to NPR 31.19 billion against NPR 41.44 billion of the previous FY 2078-79.
Source: Nepal Insurance Authority(click on the Image to enlarge)
Prabhu Mahalaxmi Life Insurance suffered the most in FPI. It witnessed 50.39 percent negative growth in the last FY. State-owned life insurer, Rastriya Beema Sansthan witnessed the lowest negative growth of 1.13 percent. Nepal Life, the leader of the life insurance business, suffered a negative growth of 10.87 percent.
The total life insurance premiums income remained NPR 1.42 trillion in the last FY. The total insurance premiums income was NPR 1.38 trillion during the evaluation period of the previous financial year. The life insurers succeed to avoid negative growth in terms of total premiums, thanks to the renewal premium income.
Industry experts opine that the negative growth of the industry will remain for at least two years. The state’s role to give pace to economic activities would be crucial to avoid the downfall of the insurance industry.