Insurance companies covered only seven percent population of Nepal

Host industries suffered huge losses. Having said that, the life insurance industry is probably the only industry that has not been affected as much given the fact that only seven percent of the total population of Nepal had their lives insured.  The reason for their could be that the life insurance

companies have been only focusing on the capital city. It has been Kathmandu centric in the past and most of the rural population is not even aware of the existence and benefits of life insurance policies. But it is not only the rural populaces who have not been able insure their lives in the event of unforeseen disasters. The well aware educated populations too are hesitant to invest in life insurance policies. However, the life insurance industry in one industry with huge growth potential.

Manoj Kumar Bhattrai, CEO of Prime life shares, “The financial position of the life insurance industry has not seen any major changes post disaster. According to our assessment, we foresee positive growth in the industry. According to Prof Dr. Fatta Bhadur KC, chairman of Insurance Board Of Nepal, “The growth of the life insurance industry has a direct and positive impact on the economic growth of the nation. Life Insurance companies invest in securities, bonds debentures, mutual funds and other productive sector.” He shares, “we encourage life insurance companies to invest in infrastructure, hydropower, agriculture, turism and the development sector.”

This industry has been growing at a rate of about 40 percent. Nepal Life is growing at a pace of around 70 percent this year. “Claims Vivek Jha, CEO, Nepal Life Insurance.” Since more than 90 percent of the population does not have a life insurance policy, the market is still in its initial phase and we seen huge potential for further growth, “he says.

Life Insurance companies have not been successful in raising awareness among the general public so far. Therefore now we have to give  training our employees and agents and well be aggressively marketing the benefits of the life insurance and our products throughout the country.