July 1: The business of non-life insurance companies has grown by 29 percent by mid-June of the current fiscal year. The result is clearly evident from the data provided by the Insurance Board.
During a nine-month period between July 2021 to May 2022, altogether twenty non-life insurance companies collected a total of Rs 34.15 billion in insurance premiums. This is Rs 7.63 billion more than the collection of insurance premium in the corresponding period of the previous year, which stood at Rs 26.52 billion.
Till last year, the growth rate of non-life insurance business was low. In previous years, the non-life insurance business could barely grow by 10 percent. However, encouraging progress is seen in the current fiscal year.
Executive Director of the Insurance Board Rajuraman Poudel said that the growth rate of non-life insurance business has been better than the previous years. He said that the business growth rate in the past was not so satisfactory but now it is encouraging.
Shikhar Insurance is in the forefront in collecting premiums. The company has collected insurance premiums of Rs 4.40 billion during the period. Everest Insurance secured the second place by collecting insurance premiums of Rs 2.79 billion. Neco Insurance, which is in the third place, collected Rs 2.61 billion.
Lately, there has been a surge in the micro insurance business. In addition, the number of insurers is also on the rise. Term policies are also being considered in non-life insurance category. Apart from this, various development works are being conducted lately. Chunky Chhetry, president of the Non-Life Insurance Association and chief Executive Officer of Sagarmatha Insurance states that all these factors boosted the business of non-life insurance companies.