The renewal of insurance policies has shown improvement of late, reflecting a gradual recovery in economic activity. According to the Nepal Insurance Authority (NIA), 14 life insurance companies, excluding microinsurance service providers, collected Rs 12.47 billion from first-year premiums and Rs 52.81 billion from renewal of insurance policies by mid-December 2024 in the current fiscal year. Comparatively, in the same period of last fiscal year (FY 2023/24), these companies had collected Rs 10.97 billion from initial insurance premiums and Rs 50.77 billion from renewals.

By mid-September 2024, first insurance premiums had increased by 21.46%, while renewal of insurance policies had decreased by 3.4%. However, since mid-October, renewal of omsirance policies have also shown positive growth.

Earlier, a lack of policy renewals had been impacting the business of insurance companies. Poshakraj Poudel, president of the Life Insurance Association of Nepal, attributed this turnaround to improving economic conditions. He noted that an increase in credit flow from banks and financial institutions, as well as a rise in import and export activities, has boosted economic activity, indirectly benefiting the insurance sector.

Life insurance companies collectively earned Rs 65.74 billion from premiums as of mid-December 2024, marking a 6.47% increase compared to the same period last fiscal year. Among these, Nepal Life Insurance collected the highest amount, with Rs 18.76 billion in premiums, reflecting a growth of about 12% from the previous year.

Microinsurance providers also reported positive figures, with Guardian, Crest, and Liberty microlife insurance companies collectively collecting Rs 403.484 million in premiums by mid-December 2024. According to the NIA, policies with an insured amount of less than Rs 50 million fall under the definition of microinsurance.