Insurance Business Increasingly Concentrated in Bagamati Province

Despite policy measures aimed at expanding insurance access to rural areas, Nepal’s insurance business remains increasingly concentrated in Bagamati Province, which includes the Kathmandu Valley, according to data from the Nepal Insurance Authority (NIA).

NIA figures show that Bagamati’s share in total insurance business has continued to rise. By mid-November of the current fiscal year (FY 2025/26), life insurance companies had collected total premiums of Rs 63.72 billion, of which 45.16 percent came from Bagamati Province. In the previous fiscal year (FY 2024/25), Bagamati’s share stood at 42.82 percent, when total life insurance premiums amounted to Rs 53.69 billion.

With the overall growth in premium collection, Bagamati’s share has also expanded. Compared to mid-November of last fiscal year, Bagamati’s share in life insurance business increased by mid-November this fiscal year, while the shares of all other provinces declined.

A similar trend is seen in non-life insurance business. By mid-November of the current fiscal year, non-life insurance companies had collected total premiums of Rs 16.21 billion, with 68.93 percent originating from Bagamati Province. The authority said Bagamati’s share increased by nearly two percentage points compared to the previous fiscal year.

In fiscal year 2024/25, non-life insurers had collected total premiums of Rs 14.35 billion, of which 67.01 percent was from Bagamati Province. Over the one-year period, the share of non-life insurance business increased in Bagamati, while it weakened in all other provinces except Karnali, where a slight increase was recorded, the authority said.

The Nepal Insurance Authority, the sector’s regulator, said it has adopted policies to extend insurance services to rural and remote areas. Executive Director Sushil Dev Subedi said insurance business tends to grow in line with economic activity, which explains the concentration in Bagamati, but stressed that companies are being encouraged to take services to villages across the country.

In 2016, the then Insurance Board tightened branch expansion policies, requiring insurers to open at least two branches outside the Kathmandu Valley before being allowed to open a branch within the Valley. The board also divided districts among non-life insurance companies and made it mandatory for them to open branch offices in all 77 districts to expand outreach.

To further broaden access, the authority issued licences to microinsurance companies three years ago, designating provinces for their operations. Guardian Micro Life was licensed in Koshi Province, Crest Micro Life in Karnali, and Liberty Micro Life in Gandaki. Likewise, Trust Micro Insurance was licensed in Lumbini, Nepal Micro Insurance in Bagamati, Star Micro Insurance in Madhesh, and Protective Micro Insurance in Sudurpaschim.

Nepal Insurers’ Association President Birendra Chhetri said that although business volumes may appear low outside Bagamati, insurance services are steadily expanding to villages. “Insurance business grows based on awareness and economic activity,” he said. “Even where business volumes are small, insurance services have reached major commercial centres in all districts.” He added that insurers are also expanding outreach through agents and representatives.

According to the authority, the total number of branches of insurance companies increased from 2,991 by mid-November 2024 to 3,000 by mid-November 2025. Of these, 1,844 belong to life insurers and 1,156 to non-life insurers.