Driven by the centralization of major economic activities, large industries, and banking networks in the Kathmandu Valley, Bagmati Province currently accounts for more than two-thirds of the country’s entire non-life insurance market.
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According to recent data from the Nepal Insurance Authority (NIA), non-life insurance companies collected a total of Rs 51.92 billion in insurance premiums nationwide. Bagmati Province dominates the sector by contributing Rs 35.81 billion, a massive 68.97% of total premiums collected. It also accounts for 44.37% of all active policies (over 15.38 lakh out of 34.67 lakh policies nationwide). Other than Bagmati, Koshi Province records Rs 4.39 billion premium collection, Lumbini Province Rs 4.25 billion, Madhesh Province Rs 3.26 billion, Gandaki Province: Rs 2.45 billion, Sudurpaschim Province Rs 1.24 billion (2.40% of the total) and Karnali Province logged Rs 504.1 million (0.97% of the total, with just 62,507 policies issued) in premium collection.
| Province |
Premium Collected (NPR) |
Market Share (%) |
| Bagmati |
35.81 Billion |
68.97% |
| Koshi |
4.39 Billion |
8.46% |
| Lumbini |
4.25 Billion |
8.19% |
| Madhesh |
3.26 Billion |
6.28% |
| Gandaki |
2.45 Billion |
4.72% |
| Sudurpaschim |
1.24 Billion |
2.40% |
| Karnali |
504.1 Million |
0.97% |
Why Is the Gap So Massive?
Non-life insurance growth is directly linked to corporate operations, import-export trade, commercial loans, and automobile sales—activities heavily concentrated in Bagmati Province.Conversely, provinces like Karnali and Sudurpaschim face severe hurdles:
Infrastructure Deficits: A lack of physical and digital infrastructure hinders market expansion.
Agrarian Economies: Lifestyles centered around subsistence agriculture generate less demand for standard commercial non-life products.
Limited Banking Presence: Lower concentrations of banks and financial institutions reduce loan-linked insurance policies.
This regional imbalance leaves rural communities—who are often the most vulnerable to natural disasters and economic shocks—without financial safety nets. While the Nepal Insurance Authority has introduced policy measures to boost provincial participation, private insurers remain heavily reliant on the safer, more profitable urban markets. Without aggressive structural intervention, decentralized insurance protection remains out of reach for millions outside the capital region.
