Last Updated on September 25, 2024

Nepal is a developing nation with a potentially booming market for insurance firms. People’s view on life and their property insurance was changed after the devastating earthquake of 2015, and more and more lives were lost as a result of the accident in the last 10 years. The insurance companies in Nepal have been operating by the renowned business group and some portion of share has owned by the general public.

How many insurance companies are in Nepal?

There are 19 life and 20 nonlife insurance companies in Nepal most of them with a higher margin. Although there is one reinsurance company, most of the companies have re-insured with international companies in Nepal.

Insurance has become a significant factor in Nepal today, because geographically and poorly built national infrastructure, including; highways, bridges, and overseas jobs cause a higher rate of accidental death.

Another factor that has played an important role in the vertical increase in the insurance business in Nepal is people’s lives stander and, generally, more people are aware of insurance now, than the past.

Although the Nepalese government raised the paid-up capital for the old and newly registered companies, it did not restrict the new companies from entering the insurance market. As a result, there are ten new insurance companies in Nepal and the number of life insurance companies has risen from 9 to 19.

Nepal Bima Samiti (Nepal Insurance Board) is the government regulatory body for insurance companies responsible for licensing the companies, regulating the policies, and taking action against companies that do not comply with the regulations on the operation.

life insurance company in Nepal

Non Life insurance companies.

Reinsurance company in Nepal.

Nepal Re-Insurance Company Limited

What types of policies are offered in Nepal?

Although the policies are depending on the companies most of them provide the following insurance packages to the insurers.

Nepal is the country in which the economy has heavily dependent on foreign remittance. Now it is mandatory if anyone goes for the foreign employee must have done the insurance in Nepal.

Popular policies;

1. Endowment policies
2. Money-back policies
3. Endowment and whole life
4. Microinsurance
5. Fire / Property Insurance
6. Motor / Vehicle Insurance
7. Marine Insurance
8. Engineering Insurance
9. Aviation Insurance
10. Personal Accident Insurance
11. Group Personal Accident Insurance
12. Medical Insurance
13. Money Insurance
14. Travel Medical Insurance

How to invest in insurance companies in Nepal?

If you overview the Nepal stock exchange the share of the Ins. companies are relatively higher than other institutions, because, people belives it, the investment will bring the fruit.

There are two types of markets where you can invest or purchase the share of the ins. companies in Nepal

1. Primary and
2. secondary.

Both markets are very tough for buying the share of ins. firms because most people want to hold their share for a long time.