Life Insurance Companies in Brisk Business Toward End of FY

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Life Insurance Companies in Brisk Business Toward End of FY

August 2: Life insurance companies recorded significant increase in their business during the last fiscal year amid threat of coronavirus pandemic.

The collection of insurance premium had initially declined for three months after the government  imposed lockdown on March  24. However, toward the end of the last fiscal year, collection of insurance premium saw a remarkable increase, according to preliminary report of the Insurance Board Nepal.

The collection of insurance premium between mid-March to mid-May was around Rs 2 billion per month. It rose to Rs 4.74 billion between mid-May to mid-June. The collection of insurance premium skyrocketed to Rs 24.55 billion in mid-June to mid-July, according to IBN.

Insurance companies say that their business gained momentum after the government lifted the lockdown. Their business was back on track toward the end of the last fiscal year.

According to the data prepared by IBN, collection of insurance premium of life insurance companies during the last fiscal year 2019/20 was Rs 94.38 billion, which is 34 percent more than  the amount in the previous fiscal year 2018/19. In FY 2018/19, collection of insurance premium was Rs 70 billion.

Stakeholders were expecting an increase in collection of insurance premium by only 15 percent.

 

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