February 5: There has been a slight improvement in the business of life insurance companies in the second quarter of the current fiscal year (FY). The business of insurance companies has been affected by the lack of liquidity in the financial sector, lack of economic activities and high inflation.
According to the data published by Nepal Insurance Authority, life insurance companies have collected Rs 71.65 billion in insurance fees till mid-January of the current fiscal year. Compared to the same period of the previous year, this figure is only 1.04 percent more. By mid-January of the previous year, all life insurance companies collectively raised Rs 70.91 billion in insurance fees.
In between mid-December to mid-January last year, 11 million insurance policies were active, but this year the number of active insurance policies has reached 14.1 million. According to the authority's data, Nepal Life Insurance Company is the one that earned the most insurance fees till mid-January at Rs18.63 billion. Suryajyoti Life Insurance, a merger between Surya and Jyoti Life Insurance, collected the lowest insurance premium of Rs 594.2 million.
The insurance companies collected Rs 12.13 billion insurance fee by mid-January of the current year. According to the authority, 1,144,000 insurance policies were sold during this period.
In mid-December to mid-January, life insurance companies collected Rs 13.50 billion insurance fee from the sales and renewal of 1.01 million insurance policies.
Rajuraman Paudel, executive director and spokesperson of the authority said that there has been some improvement in the insurance business, which slumped with the decline in economic activities. He estimated that the insurance business will expand in the coming days.
Meanwhile, the business expansion of life insurance companies is seen to be weak compared to that of non-life insurance companies. The business of non-life insurance companies increased by 11.79 percent by mid-January of the current year compared to mid-January of last year. Compared to mid-December of the current year, the non-life insurance business increased by 56.65 percent, as per the information of the authority.