Kathmandu. Nepal Insurance Authority has predicted that the growth rate of total insurance premiums will be limited to 5.54 percent in the current financial year. The authority has projected that the insurance companies will earn 1 trillion 87 billion 59 million rupees in insurance fees in the current financial year.

It is estimated that by the end of June of the current financial year, the total insurance fee income for life insurance will be 1 trillion 45 billion rupees and 41 billion rupees for non-life insurance. At the end of the last financial year 2078/79, the growth rate of the total insurance premium collected by Nepali insurance companies was 16.48 percent. Last year, the company earned 1 trillion 77 billion 81 million rupees in fees.

Last year, the ratio of insurance sector in the gross domestic product was 3.60 percent. This year, this ratio is also estimated to be 3.48 percent. According to the analysis of the authority, due to the high level of inflation and low economic growth in the current financial year, there will be a decline in insurance premiums.

According to the authority, the Nepali insurance market has been adversely affected by the recent epidemic of Covid-19, the Ukraine-Russia war and the global recession. Rashtra Bank predicts that inflation will be 7.87 percent and economic growth will be limited to 1.86 percent this year.

Looking at the situation of total insurance fee collection in the last five financial years, in the financial year 2074/75, 51.1 billion was collected from life insurance and 22.14 billion from non-life. On the other hand, 31 and 72 crores, the total was one trillion and 77 billion rupees. It is estimated that by the end of June of the current financial year, the total insurance fee income for life insurance will be 1 trillion 45 billion rupees and 41 billion rupees for non-life insurance.