Non-Life Insurance Business Grows Nearly 13% in First Four Months, Micro-Insurance Sees Strongest Expansion

Nepal’s non-life insurance industry has posted notable growth in the first four months of the current fiscal year 2082/83, reflecting increasing insurance awareness and expanding economic activity across key sectors. According to data released by the Nepal Insurance Authority, the non-life insurance business grew by 12.93 percent from Shrawan to Kartik compared to the same period last fiscal year.

The growth trend is visible across both large and small insurance companies, though micro-insurers recorded a far stronger expansion. While large non-life companies posted an average growth rate of 12.42 percent, small and micro-insurance companies experienced an impressive 40.18 percent surge. This divergence highlights the rising penetration of micro-insurance products, particularly among rural and low-income households.

Among the major non-life insurers, Himalayan Everest Insurance emerged as the fastest-growing company, recording 39.66 percent year-on-year growth in premium collection. Last year, the company collected Rs 1.15 billion in the first four months; this year, the figure rose sharply to Rs 1.60 billion. Other leading companies also posted substantial increases—NLJ Insurance grew 34 percent, while Sanima GIC expanded 30.93 percent during the same period.

NLJ Insurance collected Rs 941.9 million in premiums last year and Rs 1.26 billion this year, while Sanima GIC grew from Rs 779.3 million to Rs 1.02 billion. United Ajod Insurance also performed strongly, with a 27.80 percent increase, followed by Shikhar Insurance at 23.28 percent, IGI Prudential at 12.22 percent, and Nepal Insurance at 10 percent. These numbers reflect broad-based sectoral resilience, especially in property, motor, and health insurance portfolios.

However, not all companies experienced growth. Three insurers—the government-owned Rastriya Beema Company, The Oriental Insurance Company, and Neco Insurance—reported declines in business during the first four months. Analysts note that these declines may stem from delayed restructuring, weak market competitiveness, and operational inefficiencies relative to rapidly modernizing private-sector insurers.

In terms of total premium collection, Sagarmatha Lumbini Insurance led the market during the period, collecting Rs 1.78 billion in premiums. Shikhar Insurance followed with Rs 1.73 billion, and Himalayan Everest with Rs 1.60 billion. Siddhartha Premier Insurance collected Rs 1.54 billion, while IGI Prudential recorded Rs 1.27 billion. Additionally, Neco, NLJ, Sanima GIC, and United Ajod all crossed the Rs 1 billion mark, reinforcing the dominance of these established players in the wider non-life insurance market.

Micro-insurance companies demonstrated particularly strong momentum, collectively generating Rs 366.5 million in premiums during the review period. Last fiscal year, the sector had collected Rs 261.4 million, making this year’s performance a substantial improvement. The most notable performer was Trust Micro Insurance, which registered a 59 percent surge, increasing its premium collection from Rs 59.3 million last year to Rs 94.3 million this year.

Protective Micro Insurance also grew significantly by 51 percent, while Star Micro Insurance expanded by 33.20 percent and Nepal Micro Insurance by 22.40 percent. As of the end of Kartik, Protective Micro Insurance had the highest premium collection in the micro-category, totaling Rs 96.9 million.

Industry observers attribute the strong performance of micro-insurers to growing demand for affordable risk coverage in rural areas, improved insurance literacy, and targeted policies encouraging financial inclusion. The rapid expansion suggests that micro-insurance is emerging as a critical pillar in Nepal’s broader insurance ecosystem.

Overall, the non-life insurance sector’s double-digit growth in the first four months indicates a healthy upward trajectory. However, analysts caution that sustained performance will depend on effective regulatory oversight, digital transformation, product diversification, and stronger competition among insurers. The sector’s expansion highlights both opportunities and structural challenges as Nepal pushes toward deeper insurance penetration and more resilient financial systems.