Insurance Sector Sees Modest Improvement in First Month of FY 2025/26

Nepal’s insurance industry recorded slight growth in the first month of the current fiscal year 2025/26, according to data from the Nepal Insurance Authority (NIA). The uptick comes as the Nepal Rastra Bank (NRB) has also reported signs of economic recovery.

Compared with the corresponding month of last fiscal year, life insurance companies (excluding micro-insurers) posted a 6.01 percent increase in business. In the first month, they issued and renewed 284,176 policies, collecting premiums worth Rs 19.65 billion. In the corresponding month last year, they sold 322,786 policies, generating Rs 18.53 billion. Life insurance business had declined by 5.44 percent last fiscal year, but the latest figures suggest a reversal of that trend.

Despite the overall expansion, the number of active life insurance policies has continued to decline. As of mid-August this year, there were 11.47 million active policies, down from 13.36 million a year earlier.

Non-life insurance also showed improvement, with business expanding by 1.37 percent. Companies sold 215,285 policies and collected premiums worth Rs 4.32 billion. In the same period last fiscal year, they had issued 221,071 policies and generated Rs 4.26 billion.

The gradual pickup indicates that the industry, which had slowed sharply during the COVID-19 pandemic and subsequent economic downturn, is regaining momentum.

Growth in Microinsurance

Microinsurance companies are also stepping up expansion alongside larger insurers. By mid-August, they had issued 295,708 policies worth Rs 773.2 million.

Within the non-life segment, four microinsurance providers recorded business worth Rs 782 million, issuing 28,456 policies during the period. According to NIA, Nepal Micro Insurance generated Rs 201 million, Protective Micro Insurance Rs 208 million, Star Micro Insurance Rs 174 million, and Trust Micro Insurance Rs 198 million.