Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Insurance coverage in Nepal has expanded to reach 47.95% of the total population as of the end of Jestha (June 2025), according to data released by the Nepal Insurance Authority (NIA). This marks a 4% increase compared to the same period last fiscal year, when coverage stood at 43.95%.
Within the first 11 months of the current fiscal year, insurance companies operating in Nepal have recorded a combined business volume of NPR 195.04 billion (approx. USD 1.46 billion)—a 14.51% rise from the NPR 170.32 billion recorded during the same period last year.
Life Insurance Dominates
There are currently 14 life insurance and 14 non-life (general) insurance companies operating in the country. Of the total premium collected this fiscal year, life insurance companies alone generated NPR 155.15 billion, reflecting a 16% increase from last year’s NPR 133.78 billion.
Breakdown of life insurance premiums:
First Premium: NPR 35.17 billion (up from NPR 27.70 billion) – 26.98% increase
Renewal Premium: NPR 119.98 billion (up from NPR 106.05 billion) – 13.13% increase
As of the end of Jestha, the total number of active life insurance policies stood at 15.49 million, which is a 10% rise from last year’s 14.09 million.
However, traditional life policies (excluding term, micro-term, and foreign employment insurance) saw a slight decline of 2.87%, totaling 5.54 million compared to 5.70 million last year.
Non-Life Insurance Business Up 9%
The non-life insurance sector also posted healthy growth, with a 9.06% rise in premium collection, totaling NPR 39.88 billion by the end of Jestha. This compares to NPR 36.56 billion during the same period last year.
Surge in Specialized Policies Term and micro-term life insurance policy counts reached 7.42 million, up from 6.32 million last year — a 17.38% increase.
Similarly, foreign employment life insurance policies rose to 2.54 million, up from 2.07 million last year — a 22.92% surge.
Insurance Infrastructure and Employment
The insurance sector’s physical and human infrastructure also grew:
Total offices nationwide: 3,007
Life insurance offices: 1,850
Non-life insurance offices: 1,157
Total employees: 12,234, a 4.80% increase from 11,674 last year
This data underscores Nepal’s growing insurance market, driven by policy expansion, diversified products, and increasing public awareness. The Nepal Insurance Authority is expected to continue efforts in deepening financial inclusion, especially through micro-insurance and rural outreach programs.
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