Kathmandu. There has been a slowdown in the non-life insurance business. The slowdown in the economy has not only affected the banking and financial sector but also the insurance sector. According to the Insurance Authority, the regulator of the insurance sector, the business of non-life insurance companies has decreased by 3.19 percent. The problem has been created in the insurance sector due to abandoning the policy, not taking insurance at all. Since the beginning of the financial year, there has been a contraction in the insurance business due to the decline in economic activity.
According to the Insurance Authority, 14 non-life insurance companies have collected 19.44 billion insurance fees till the second quarter. This amount is 64 crore less than the second quarter of last year. Non-life insurance companies had a business of 20 billion rupees till the second quarter of last year.
Among the non-life insurance companies, the business of National Insurance Company has declined the most. The business of this company has decreased by 50.75 percent. The company has collected insurance fees of Rs 693.4 million till January of the current year. During the same period last year, this company had a business of 1.4 billion rupees. By mid-December, 6 out of 14 non-life insurance companies’ business has shrunk.
Shikhar Insurance has the highest market share in non-life insurance business. This company has done a business of 2 billion 45 crores till January. This is 7.60 percent less than the same period last year. Among the 8 companies expanding their business, The Orient Insurance is at the forefront. This company has expanded its business by 33.31 percent compared to the previous year in 6 months. He has earned a premium of Rs 93 crore 51 lakh till January. The insurance authority has also informed that three of the four non-life insurance companies that have been allowed to do business have collected premiums of Rs 45 million in six months.
Although there has been a contraction in non-life insurance business, there has been some improvement in life insurance. By the end of the current financial year, life insurance companies have collected 74 billion 24 million rupees in insurance fees. Until the second quarter of last year, the life insurance company had earned 71 billion 75 million rupees in premium. This year, the business has increased by an additional 2 billion 56 million rupees. By the end of January, life insurance companies have collected 13.84 billion rupees for the first insurance fee. This amount is 2.36 percent less than the second quarter of last year. Until that period of the last year, life insurance companies had collected 14.17 billion rupees from the first insurance fee.
In the second quarter of the current year, the business of Rashtriya Bima Company decreased the most by 22.57 percent, while that of Sun Nepal decreased by 8.43 percent and that of Life Insurance Corporation by 1.18 percent. Similarly, in the second quarter of the current year, Nepal Life has earned the most insurance fees. This company has collected 20 billion rupees insurance fee. The company has collected 7.46 percent more insurance premiums in the same period of the current year compared to the second quarter of the previous year.
Prabhu Mahalakshmi Life Insurance is ahead among the life insurance companies that grew the most business in the second quarter. This company has earned 2 billion 383 million insurance fees till January of the current year. Compared to the same period last year, the company collected 14.01 percent more. Sun Nepal Life has done the least business worth 1 billion 78 million rupees.