Kathmandu. Insurance companies will have to collect at least Rs 30.27 billion in total insurance premiums in the month of June to meet the estimated target of 3.69 percent of the total insurance collection to gdp in the current fiscal year.
The overall insurance sector is expected to grow at around 10 per cent in the current fiscal year. Life and non-life insurers had collected Rs 27.63 billion in insurance premium in the month of June last year.
According to nea’s estimates, 13 percent of the total insurance premium target is yet to be met. Life and non-life insurance companies have achieved 93 percent of the target till Mid-May, which means rs 195.41 billion in total insurance premiums have been collected.
According to the National Statistics Office, the size of the economy will increase by Rs 400 billion to Rs 6,106 billion by mid-June of the current fiscal year. While this estimate remains the same, the insurance sector will have to collect a total of Rs 225.31 billion in insurance fees to meet the estimated contribution target set by the NRA.
Of the total insurance premium collected by the insurance company, 80 percent is from life insurance and the remaining 20 percent is from non-life insurance. To meet the estimated target, life insurers will have to collect Rs 24.21 billion and non-life insurers rs 6.53 billion.
Since June is the last month of the financial year as compared to other months, both agents and employees try their best to be eligible for additional incentives (money and facilities) by meeting the business target. For the insured who does not have any solution, he issues a new insurance policy even after investing the money of his own pocket.
In addition, in the past years, the number of insurance policies issued in June is more than other months, so the renewal insurance fee collection is also high. Apart from this, the life insurer has also implemented schemes such as discount on the amount of damages, cash back on online payments, etc. in the revival of the insurance policy to meet the goal of collecting renewal insurance fees, so the amount collected for renewal insurance is also more than other months.
Nepal Insurance Authority (NEA) last fiscal year 2080. The insurance sector’s contribution to the GDP is expected to increase in the current fiscal year as compared to 81. NeA has estimated that the GDP (at prevailing prices) will improve slightly from the last fiscal year.
Highest contribution in five years:
In the current fiscal year, the insurance collection ratio will be at the highest point in the last five years.
According to the special issue published on the occasion of the 57th anniversary of nea, the ratio of insurance fee collection to GDP in the last fiscal year was 3.47 percent.
Ratio of total insurance fee collection to GROSS domestic product (at prevailing prices) FY 2077. 78 to FY 2080. It was 3.52%, 3.58%, 3.41% and 3.47% respectively.
Bank and insurance sector contribution:
The National Statistics Office has estimated the overall contribution of the bank and insurance sector to GDP at 6.65 percent in the current fiscal year 2081/82 BS. The overall value added growth rate is estimated to be 6.29 per cent.
According to the National Statistics Office, the size of the economy will increase by Rs 400 billion to Rs 6,106 billion by mid-June of the current fiscal year.
According to the office, the total value addition to the sector is expected to increase with the increase in deposit and credit flow to the bank. In the last fiscal year 2080/81, the contribution of banks and financial sector to GDP was estimated to be 7.94 percent. According to the data of the fiscal year 2079/80, the growth rate of this sector was 7.92 percent in that year.
