Kathmandu, July 27

The total size of the insurance market of the country surged by 22.74 per cent to Rs 57.53 billion in the last fiscal from about Rs 46.87 billion in fiscal 2015-16.

The total premium collection by life and non-life insurance companies that are operating in the country increased by 20 per cent and 27.75 per cent, respectively, in the last fiscal year 2016-17, according to data maintained by the Insurance Board (IB).

The IB data show that life insurance market rose to Rs 38.40 billion in the last fiscal from Rs 31.97 in the previous year. Similarly, non-life insurance firms collected Rs 19.03 billion in premium in the last fiscal, against Rs 14.90 billion in fiscal year 2015-16.

In fiscal 2016-17, nine life insurance companies had collected Rs 10.56 billion as their first premium, which was Rs 9.51 billion in fiscal 2015-16. Likewise, the share from foreign employment policy in the year was Rs 2.58 billion, against Rs 1.82 billion in the previous year.

The data maintained by the regulatory authority of the insurance sector reveal that life insurance firms collected Rs 25.26 billion in the last fiscal simply by renewing older policies. In fiscal 2015-16, policy renewal had generated Rs 20.63 billion for the insurance companies.

Among the nine life insurance firms, Nepal Life Insurance remained on the top of the list in terms of premium amount with collection standing at Rs 12 billion, which was Rs 10.25 billion in fiscal 2015-16. However, National Life Insurance Company was the forerunner in terms of growth, recording a collection of Rs 4.95 billion in 2016-17, a surge of 29 per cent compared to Rs 3.85 billion in fiscal 2015-16.

Meanwhile, the growth rate of government-owned Rastriya Beema Sansthan (RBS) retarded to eight per cent year-on year, from Rs 2.47 billion in fiscal 2015-16 to Rs 2.68 billion in fiscal 2016-17.

Among the non-life insurance firms, Shikhar Insurance Company remained on the top by collecting Rs 2.77 billion in premium in fiscal 2016-17 against Rs two billion the previous year, recording a growth of 38.42 per cent.

Of the total 17 non-life firms, Neco and NB Insurance Company were able to grow by more than 50 per cent. Market of Neco Insurance boosted by 50.39 per cent and NB Insurance by 98.5 per cent.

Market of Rastriya Beema Company increased by only 0.04 per cent, the lowest growth among non-life firms. The company collected Rs 869 million in fiscal 2016-17 against Rs 868 million in the previous year.

“The insurance market has been growing significantly and our target is to increase it in the ratio of the gross domestic product of the country,” said Chiranjibi Chapagain, chairperson of IB.