Kathmandu. Nepal’s insurance sector has the highest contribution among South Asian countries in terms of the total collected insurance ratio to the GROSS domestic product.
According to the data published by the Insurance Authority of Nepal, the insurance penetration of Nepal is 3.72 percent in terms of contribution to the GROSS domestic product. Of this, 2.98 percent is for life insurance and 0.74 percent for non-life insurance.
After Nepal, india is in second place. India’s insurance penetration accounted for 3.7 per cent of gdp in FY24, according to data published by india brand equity foundation, a government-backed agency. Of this, 2.8 percent was in the life insurance sector and the rest in the non-life insurance sector.
India’s per capita insurance premium income reached Rs 8,297 in FY23. In the last fiscal year, the annual life insurance premium per person in Nepal was Rs 7,330.29.
According to data published by another South Asian Maldives Monetary Authority, the insurance penetration of the Maldives was 1.6 percent in 2024. Among the South Asian member countries, Maldives ranks third in terms of insurance penetration.
Sri Lanka’s insurance penetration is stronger than Bangladesh and Pakistan. According to data published by Sri Lanka’s insurance regulator, insurance penetration accounted for 1.39 per cent of the country’s gross domestic product in 2020. Of this, life insurance contributes 0.69 percent and non-life insurance contributes 0.70 percent.
Sri Lanka’s insurance market is expected to have an average per capita insurance premium of $77.76 in 2025. Similarly, the total insurance collection is estimated to be $1.71 billion. Of this, non-life insurance will cover $1.17 billion.
Among South Asian countries, Pakistan has an insurance penetration of 0.60 per cent. Insurance penetration in Bangladesh is the weakest. According to Abdul Hamid, an FCA in Bangladesh, insurance penetration in Bangladesh is only 0.40 percent.
