Kathmandu. Do you have insurance? If not, you should get insurance as soon as possible. Insurance is very useful in the event of an unforeseen accident or emergency in the future.
There are many types of insurance. Such as life insurance, health insurance, term insurance, property insurance, car insurance, crop insurance, etc. Anything can be insured. Insurance companies pay a substantial amount at the time of claim payment. This raises the question of how insurance companies earn even after paying such a huge amount at the time of claim payment.
Insurance companies are regulated by the Insurance Authority of Nepal. The headquarters of NEA is at Kupondole, Lalitpur. The authority supervises and inspects the insurance companies and controls the entire insurance industry.
The work of the Authority includes formulating insurance policies, resolving customer problems and issuing licenses to companies.
Investing the client’s money
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The amount of premium you pay for insurance is invested by insurance companies to maximize returns and ensure customer claim payments.
Product Development
Insurance companies under the authority develop various products including life insurance, health insurance, property insurance, car insurance, etc.
Distribution & Marketing
Insurance companies also handle distribution and marketing. Insurance companies also market their products online.
Insurance & Certification
Insurance companies offer various insurance offers to attract customers. Apart from this, companies also check and verify the application received from the customer according to the nature of the insurance.
Claim Payment & Reinsurance{
Insurance companies also process the claim payment as per the guidelines set by the authority. Many insurance companies also offer reinsurance to cover major risks.
Income of insurance companies
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There has been a growing interest in insurance in the country in recent times. However, statistics show that less than half of the population is covered by insurance. The income of insurance companies depends on their business model, insurance policy and risk management.
These are the ways to earn
- insurance companies take a premium from the customer for the sale of insurance policies.
- Insurance companies also earn significant income by charging various fees such as insurance management fees and insurance surrender fees.
- Sometimes, the income of insurance companies increases even when the number of claims decreases.
- Insurance companies also charge a commission when transferring risk to reinsurance companies. There are many other ways to make money.
Insurance companies invest the premium received from the customers in bank fixed deposits, government bonds, mutual funds, stock market, etc.TAG_OPEN_li_61 From which they get the rewards.
How many insurance companies are TAG_OPEN_strong_50 there?
Currently, there are 37 insurance companies in Nepal. There are 14 life insurance companies, 14 non-life insurance companies, 7 micro (life and non-life) insurance companies and 2 reinsurance companies.
