Insurance Companies Record Business Growth in FY 2024/25

Insurance companies in Nepal recorded improved business performance in the fiscal year 2024/25, recovering from the slowdown caused by the COVID-19 pandemic and the subsequent economic slowdown.

According to the Nepal Insurance Authority, life insurance companies, excluding micro-insurers, collected premiums worth Rs 181.43 billion in FY 2024/25, a 16.05 percent increase compared to Rs 156.33 billion in FY 2023/24. In contrast, the growth rate in FY 2023/24 was only 9.81 percent compared to FY 2022/23, indicating a stronger expansion in the last fiscal year.

Non-life insurance companies also saw growth during the period. Excluding micro-insurers, they collected Rs 43.96 billion in premiums in FY 2024/25, a 6.77 percent rise from Rs 41.17 billion in the previous fiscal year. This marks a significant improvement from FY 2023/24, when the sector grew by only 2.38 percent.

Nepal Insurance Authority Executive Director and Spokesperson Sushil Dev Subedi attributed the growth to improved economic activity. “As overall economic activity has picked up pace, the insurance sector has experienced a positive impact,” he said. “Compared to the previous year, both life and non-life business have increased, signaling an improvement in people’s spending capacity.”

The government has estimated that Nepal’s economy grew by 4.61 percent in FY 2024/25.

Currently, 14 life insurance companies and 14 non-life insurance companies operate in the country. By the end of FY 2024/25, the number of active life insurance policies reached 14.1 million, up from 13.7 million in the previous fiscal year. Non-life insurers sold 2.864 million policies during the year, compared to 2.849 million in FY 2023/24, according to the Authority’s data.

Micro-insurance also posted substantial growth. Micro life insurers collected Rs 843.4 million in premiums in FY 2024/25, compared to Rs 169.7 million in the previous fiscal year. Similarly, micro non-life insurers collected Rs 953.8 million, up from Rs 294.8 million a year earlier. Currently, three micro life insurers and four micro non-life insurers are in operation in Nepal.