Non-Life insurance premiums hit Rs 32.52 billion in Nepal: Shikhar leads, National Insurance at bottom

KATHMANDU: Nepal’s non-life insurance sector has demonstrated robust expansion, with total premium collections reaching NPR 32.52 billion (Rs 32 Arba 52 Crore 82 Lakh) by the end of Falgun in the current fiscal year, according to the latest data from the Insurance Authority of Nepal. The figures reflect growing insurance penetration, rising risk awareness, and gradual market deepening in Nepal’s financial services ecosystem.

Shikhar Insurance Dominates Market

Among the 14 operating non-life insurance companies, Shikhar Insurance emerged as the market leader, securing NPR 4.38 billion in premium collections. The company continues to maintain a strong distribution network and diversified portfolio across motor, property, and corporate insurance segments.

Trailing behind in second position is Sagarmatha Lumbini Insurance with NPR 3.36 billion, followed closely by Himalayan Everest Insurance, which recorded NPR 3.20 billion in premiums.

Mid-Tier Insurers Show Competitive Growth

A cluster of mid-tier insurers also reported significant business volumes, highlighting increasing competition and market fragmentation:

Siddhartha Premier Insurance – NPR 2.79 billion
IGI Prudential Insurance – NPR 2.68 billion
NLG Insurance – NPR 2.53 billion
Neco Insurance – NPR 2.39 billion

These firms are increasingly leveraging digital onboarding, bancassurance partnerships, and corporate risk coverage to expand their premium base.

Lower-Tier Performance and Market Gap

In the lower tier, insurers are facing pressure to scale operations and improve underwriting efficiency:

United Ajod Insurance – NPR 1.96 billion
The Oriental Insurance Company Nepal – NPR 1.94 billion
Sanima GIC Insurance – NPR 1.78 billion
Nepal Insurance Company – NPR 1.49 billion

Meanwhile:

Prabhu Insurance – NPR 1.21 billion
Rastriya Beema Company – NPR 1.06 billion

At the bottom of the table, National Insurance Company Nepal reported the lowest premium collection at NPR 860 million, indicating a widening performance gap within the industry.

Policy Issuance Crosses 2.16 Million

The sector has also seen a rise in policy issuance, with total active policies exceeding 2.16 million, signaling increased adoption of insurance products among individuals and businesses. Growth in motor insurance, property coverage, and health-related non-life policies has been particularly notable.

Micro Insurance Gains Momentum

Parallel to mainstream insurance, Nepal’s microinsurance segment is steadily expanding, especially in rural and underserved markets. Total premium collection from four micro insurers reached NPR 825.87 million.

Breakdown of microinsurance companies:

Nepal Micro Insurance – NPR 215.06 million
Protective Micro Insurance – NPR 228.09 million
Star Micro Insurance – NPR 184.04 million
Trust Micro Insurance – NPR 198.67 million
Market Outlook and Industry Signals

The latest data underscores a structural shift in Nepal’s insurance landscape, driven by regulatory tightening, digital transformation, and increased financial literacy. The Insurance Authority of Nepal has been pushing for capital strengthening, risk-based supervision, and product innovation—factors expected to further consolidate the market.

With Nepal’s economy gradually stabilizing and infrastructure investments rising, demand for non-life insurance—particularly in hydropower, aviation, construction, and logistics—is projected to grow. However, the widening gap between top-performing and lagging insurers indicates that consolidation or strategic mergers could become inevitable in the medium term.

Details of Insurers Conducting Non-Life Insurance Business — Fiscal Year: 2082/83