Non-life Insurers’ Business Grows 13.4% Mid-Year

The business of non-life insurance companies grew by 13.37 percent in the first half of the current fiscal year (FY 2025/26), buoyed by improving economic activity and a gradual recovery in credit flow of banks.

According to data published by the Nepal Insurance Authority, 14 non-life insurance companies—excluding micro-insurers—collected Rs 23.68 billion in insurance premiums from the sale of 1.42 million policies by mid-January this fiscal year.

In the corresponding period of the previous fiscal year, the companies had collected Rs 20.88 billion in premiums from 1.39 million policies. The authority said the increase reflects a steady rebound in the insurance market following a prolonged economic slowdown.

Month-on-month data also show growth. Non-life insurers collected Rs 4.18 billion in premiums in the month of Poush (mid-December to mid-January) this year, up from Rs 3.70 billion during the corresponding period last year.

At present, 14 companies are providing non-life insurance services in Nepal. By mid-January, Shikhar Insurance led the market with premium collections of Rs 2.77 billion, while Rastriya Beema Company recorded the lowest collection at Rs 567.2 million, the authority’s data show.

Insurers say public awareness of insurance has also increased following losses caused during the Gen-Z protest in September, which damaged private and public property in several areas.

Chanky Chhetri, former president of the Nepal Insurers’ Association and chief executive officer of Sagarmatha Lumbini Insurance, said the damages caused during the protests prompted more people to recognise the importance of insurance coverage, contributing positively to business growth.

Micro non-life insurers also reported a notable rise in business. By mid-January, micro-insurance companies collected Rs 626.7 million in premiums through 230,000 policies, compared to Rs 422.9 million from 168,000 policies during the same period last fiscal year.

Currently, Nepal Micro Insurance, Protective Micro Insurance, Star Micro Insurance and Trust Micro Insurance are engaged in non-life micro-insurance business in the country.

Paudel appointed acting chair of Insurance Authority

Meanwhile, the government has appointed Chandrakala Paudel, secretary at the Ministry of Federal Affairs and General Administration, as the acting chairperson of the Nepal Insurance Authority.

A cabinet decision on Monday assigned Paudel the responsibility until further arrangements are made. She formally assumed office on Tuesday.

The appointment follows the dismissal of former chairperson Sharad Ojha. Prior to Paudel’s appointment, the authority was headed by a joint secretary from the Ministry of Finance, a role most recently held by Janak Raj Sharma.