The figures highlight a strong reliance on policy renewals and underscore a heavy market concentration in Bagmati Province, alongside a solid performance by industry leader Nepal Life Insurance Company (NLIC).
Market Leadership and Revenue Breakdown
Nepal Life Insurance Company has firmly maintained its dominance in the sector, collecting Rs 14.72 billion in insurance premiums until mid-October. This includes Rs 3.15 billion in first insurance premiums (new business) and Rs 11.57 billion in renewal premiums.
Across the broader industry, out of the Rs 58.73 billion total collection, Rs 13.92 billion came from new business, while a massive Rs 44.80 billion stemmed from the renewal of old policies. This indicates that policy renewals continue to serve as the primary growth engine for life insurers.
Other key industry players also reported substantial figures:
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National Life Insurance: Rs 7.36 billion
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Life Insurance Corporation of Nepal (LIC): Rs 5.45 billion
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Surya Jyoti Life Insurance: Rs 3.51 billion
Notably, market leader Nepal Life holds more than double the premium collection of National Life Insurance, which stands in second place, pointing to a significant gap in market share among major insurers.
Micro-Insurance and Foreign Employment Pools
The report also highlights the emerging contribution of the micro-insurance segment. A total of Rs 1.10 billion was collected through small-scale life insurance providers and three operational micro life insurance companies—Guardian Micro Life, Crest Micro Life, and Liberty Micro Life. During this period, these entities issued 6,70,554 small life insurance policies, expanding financial coverage to low-income populations traditionally left out of the formal insurance net.
Additionally, the foreign employment temporary life insurance pool generated Rs 86.50 crore in premiums up to mid-October, catering to Nepali workers heading abroad for employment.
Geographical Disparity in Premium Collection
Geographically, the data reveals a stark concentration of business in Bagmati Province, which accounted for Rs 26.88 billion—roughly 46 percent of the national total collection.
Other provinces trailed significantly behind:
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Lumbini Province: Rs 8.84 billion
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Koshi Province: Rs 6.92 billion
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Gandaki Province: Rs 5.83 billion
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Madhesh Province: Rs 5.15 billion
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Sudurpaschim Province: Rs 3.35 billion
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Karnali Province: Rs 1.72 billion
Experts note that this geographical disparity highlights an urgent need to expand insurance awareness and services into remote regions like Karnali.
Policy Preferences Among Insured Individuals
In terms of policy types, term life insurance plans captured the highest share, bringing in Rs 26.12 billion. Other popular categories included prepayment plans at Rs 10.46 billion and children-related insurance policies at Rs 8.57 billion. Industry observers attribute the popularity of term plans to their dual benefit of comprehensive coverage and guaranteed returns, making them a preferred choice for family security, children's education, and long-term financial planning.
