Insurance business growing

Rastriya Samachar Samiti

KATHMANDU: The insurance business that has nearly six-decade old history in Nepal has witnessed a significant growth in recent years. In the last fiscal year, different insurance companies registered a total transaction of Rs 14.4 billion, according to the Beema Samiti (Insurance Board). According to the statistics provided by the Board, life insurance saw a transaction of Rs 8.9 billion and no-life insurance Rs 6.5 billion.

Over 16 companies are providing non-life insurance service while eight companies are providing life insurance service. Rastriya Beema Sansthan provides both life and non-life insurance services.

In the previous fiscal year, the 25 companies had registered a total transaction of Rs 10.9 billion including Rs 6.5 billion in non-life insurance and Rs 4.4 billion in life insurance.

Nepal Insurance Company had begun the insurance business for the first time in Nepal on Jestha 4 2008 BS through non-life insurance.

Chairman of the Insurance Board Dr Phatya Bahadur KC said increased awareness among the people about the risks associated with life and goods has been leading to a growth in insurance business.

KC said there is still lack of positive attitude about insurance while it has also not been on government’s priority and insurance is yet to come within the reach of commoners.

Besides, the lack of transparency also hampered monitoring in the sector in the past, he said.

Rastriya Beema Sansthan recorded transaction of Rs 1.542 billion including Rs 1.2 billion in life insurance and Rs 340 million in non-life insurance in the last fiscal year. In the previous fiscal year, Beema Sansthan has recorded business of Rs 1.026 billion from life insurance and Rs 190.8 million from non-life insurance.

Administrator at Beema Sansthan Binod Aryal said the reach of insurance to rural population is yet to grow even though insurance business is growing in the urban centers. He said keeping in view with the little access of rural population to insurance, the Beema Sansthan is launching different insurance schemes like health insurance, crop insurance and livestock insurance. The Rastriya Beema Sansthan began its business in 2024 BS and it has expanded its services to all 75 districts.

It has been providing life insurance service to over 75,000 employees. From both life and non-life insurance, the company has been earning around Rs 350 million premium every year.

Economist Radheshyam Malakar said insurance companies play a great role in collecting the capital spread across the country. With awareness about the accidents and risks associated with industrial sector and risks posed by natural disasters, many people have started understanding the importance of insurance, Malakar said.

Source: http://www.thehimalayantimes.com/fullNews.php?headline=Insurance+business+growing+&NewsID=253835