Nepal Non-Life Insurance Sector Sees Nearly 13% Growth; Micro-Insurance Expands Over 40%

Nepal's non-life insurance sector experienced a significant growth of 12.93% in the initial four months of the fiscal year 2082/83, underscoring a robust increase in insurance awareness and expanding economic activity. The data from Nepal Insurance Authority points to a substantial surge not only among large insurers, who registered an average growth of 12.42%, but particularly among micro and small insurance companies with a notable 40.18% increase, reflecting enhanced penetration of micro-insurance in rural and low-income segments. Himalayan Everest Insurance led the growth chart with a 39.66% rise in premium collection, increasing from Rs 1.15 billion to Rs 1.60 billion year-on-year. Other significant performers include NLJ Insurance and Sanima GIC, reporting 34% and 30.93% growth respectively, with other market players like United Ajod, Shikhar Insurance, IGI Prudential, and Nepal Insurance exhibiting sector-wide resilience, particularly in property, motor, and health insurance portfolios. Conversely, some government-owned insurers such as Rastriya Beema Company, The Oriental Insurance Company, and Neco Insurance witnessed a decline attributed to delayed restructuring and suboptimal competitiveness compared to private insurers embracing modernization. Leading in total premiums collected, Sagarmatha Lumbini Insurance topped with Rs 1.78 billion, followed closely by Shikhar Insurance and Himalayan Everest with Rs 1.73 billion and Rs 1.60 billion respectively, confirming the dominance of established firms within Nepal's non-life insurance landscape. Micro-insurance providers saw remarkable gains, collectively amassing Rs 366.5 million in premiums, a significant jump over the previous fiscal year's Rs 261.4 million. Trust Micro Insurance achieved the highest individual surge at 59%, while Protective, Star, and Nepal Micro Insurance expanded by 51%, 33.20%, and 22.40% correspondingly, with Protective Micro Insurance securing the highest premium in the category. This momentum in micro-insurance results from increased demand for affordable risk coverage, improved insurance literacy, and targeted financial inclusion strategies, positioning micro-insurance as a vital segment within Nepal's insurance ecosystem. While the overall growth trajectory is positive, sustainability depends on enhanced regulatory frameworks, digital innovation, diversified product offerings, and intensified competition. The sector faces structural challenges as Nepal pursues deeper insurance market penetration and resilient financial infrastructure. The data underscores an ongoing shift toward inclusive insurance practices and highlights opportunities for further innovation and development in both traditional and micro-insurance segments. It points to a maturing insurance market adapting to Nepal's evolving economic landscape, with implications for regulatory focus and private sector agility.