Kathmandu. Nepal’s microinsurance market has portrayed a dual structure. While microinsurance companies dominate the number of non-life insurance policies, traditional insurers continue to lead in life insurance prices.
This is according to the data of mid-June 2025 mentioned in the report related to micro insurance business published by the Nepal Insurance Authority. According to the data, the market share of traditional insurers in the micro life insurance (active insurance policy) is 67.23 percent, while the remaining 32.76 percent is occupied by micro insurers.
Among the micro non-life insurance (active insurance), the share of micro insurers is 96.63 percent and that of traditional insurers is only 3.37 percent. Conventional insurers control 80.85 percent of life micro insurance. Micro insurers have a share of 19.15 percent. Micro insurers have contributed 90.28 per cent to the amount of non-life insurance.
These figures indicate that micro insurers are aggressively selling micro non-life insurance policies. In contrast, traditional life insurers have focused on selling high actuarial policies.
Currently, Guardian Micro Life Insurance, Crest Micro Life Insurance and Liberty Micro Life Insurance are the insurance companies. Apart from this, there are 14 traditional life insurance companies in operation.
Insurance experts say the next phase of competition between micro and traditional life insurers is likely to focus on product bundling and digital distribution.
