Kathmandu: The declining figure of first premium income (FPI) has enlarged the degree of dependency on renewal premium income(RPI) for life insurers in the current fiscal year 2079-80. RPI covers 80.18 percent of the total premium income(TPI) collected by the life insurers in the first four months of the current FY i.e. Kartik end.
According to Nepal Insurance Board, Life insurers earned Rs.36 billion 894.2 million RPI against TPI Rs.46.01 billion. The FPI till Kartik was Rs.9.11 billion.
In recent months, due to the economic recession, life insurance agents are unable to sell life insurance policies as expected. To avoid negative growth, life insurers have started using surrender value as a tool to generate new business. The money paid against surrender value is recollected by the life insurers to issue a new policy. Such practices have been done with the involvement of senior or corporate agencies.
Till Kartik of the current FY, Nepal Life Insurance earned Rs.11.14 billion RPI. LIC Nepal earned Rs. 5.08 billion. National Life earned Rs. 4.4 billion rupees RPI during the same period.
Similarly, Union Life earned Rs. 2.9 billion RPI while Asian Life earned Rs. 1.83 billion. State-owned only life insurer, Rastriya Beema Sansthan earned Rs.1.30 billion,Met Life(Alico) earned Rs.1.3 billion and Prime Life earned Rs. 1.27 billion RPI.
According to the Authority, Citizen Life earned Rs.1.22 billion and Surya Life earned Rs. 1.18 billion RPI. Guransh Life earned Rs. 871.9 million IME Life earned Rs. 838.2 million, Reliance Life earned Rs. 779.8 million and Jyoti Life earned Rs. 774.6 million RPI.
Similarly, Reliable Nepal Life has earned Rs.677.2 million, Sun Nepal Life has earned Rs. 659.9 million rupees, Sanima Life earned Rs. 542.3 million. Prabhu Life earned Rs. 519 million and Mahalakshmi Life earned Rs. 367.6 million RPI.
