Kathmandu. KATHMANDU: The public’s attraction and trust in the life insurance business in Nepal is seen to be strengthening. Nepal Insurance Authority (NIA) has published the last three fiscal years (2079). 80 to 2081. According to the financial statement of the 82nd century, there has been an encouraging increase in the life insurance fund of life insurance companies.
According to the details, the total insurance fund of 14 life insurance companies and 3 micro life insurance companies is in operation in the fiscal year 2081. By the end of ’82, it had reached Rs 805.91 billion.
According to the statistics of NEA, the collective fund of both life insurance and micro life insurance is increasing every year. Fiscal Year 2079. The total fund increased by 11.53 per cent to Rs 805.91 billion from Rs 561 billion in the review year.
Nepal Life Insurance Company is the largest insurance company among the insurance companies. Whose fund is in the financial year 2081. By the end of 2018, it had reached Rs 233.67 billion. Nepal Life Insurance Corporation (Nepal) is in the second position with Rs 132.92 billion and National Life Insurance Company (Rs 89.91 billion).
Average annual growth rate
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If we analyze the data of the last three years using the Chakrabarti method, the average annual growth rate of life insurance fund in Nepal is 14.62 percent. Despite the fluctuations in the overall market, the increase in fund by around 15 percent annually is taken as the maturity and positive indicator of the insurance sector.
How much will the fund reach in the next 5 years?
If the insurance market in Nepal continues to grow at an average annual growth rate of 14.62 percent for the next five years, then the size of the life insurance fund can be expected to reach a historic high. Fiscal Year 2081. From the base price of Rs 82 (Rs. 805.91 billion), the fund is expected to grow in the coming years as follows:
- A.B. 2082. 83: Rs 923.73 billion
- A.V. 2083. 84: Rs 1058.82 billion
- A.V. 2084. 85: Rs 1213.67 billion
- A.V. 2085. 86.: Rs. 1391.11 billion
- A.V. 2086. 87: Rs 1594.52 billion
If the current trend continues, the total fund of life insurance companies in Nepal will almost double to Rs 16 trillion in the next five years. The fund is expected to contribute significantly to long-term capital formation and the state’s economy.
