Life insurance coverage in Nepal has reached a record high of 44.64 percent of the population, according to the Nepal Insurance Authority (NIA). As of mid-April 2025, this marks the highest level of life insurance penetration in the country’s history.
Despite this progress, 55.36 percent of Nepal’s population remains uninsured, highlighting a significant coverage gap. The rise in insurance coverage comes after a temporary dip to 42.70 percent in mid-August 2024, triggered by an economic slowdown that led to fewer new policies and more policy surrenders.
Key Figures:
- Current life insurance coverage: 44.64%
- Life insurance policies in force: 14.39 million
- Premium collection (first 9 months FY 2024/25): Rs 127.37 billion
(Up 15.32% from Rs 110.16 billion in the same period last year)
Policy Type Breakdown:
- Including all policies (foreign employment, fixed/short-term): 44.64%
- Excluding foreign employment policies: 36.65%
- Excluding short-term, fixed-term, and foreign employment policies: 16.48%
Contributing Factors:
- Entry of microinsurance companies
- Enhanced marketing efforts by insurers
- Local-level outreach programs initiated by NIA
Currently, 14 major life insurance companies and three microinsurance companies are operating in Nepal, helping drive insurance inclusion. While the growth in premium collection and policy outreach is encouraging, the disparity in meaningful long-term policy coverage (only 16.48%) suggests there is still substantial room for deeper market penetration and financial inclusion.
