KATHMANDU: Nepal’s life insurance industry continued to expand in the fiscal year 2025/26 (FY 2082/83), but the market remains heavily concentrated in urban areas, with Bagmati Province accounting for nearly half of the total business.
According to the Nepal Insurance Authority, Nepal’s 14 life insurance companies and three micro-life insurers collected a total of Rs 204.60 billion in gross insurance premiums during the fiscal year.
Bagmati Province contributed the largest share, generating Rs 86.96 billion, or 42.50% of the industry’s total premium income. The figures indicate that Nepal’s life insurance market remains largely dependent on Kathmandu Valley and other urban centres with higher levels of economic activity.
Lumbini Province ranked second, with Rs 33.22 billion in premiums, representing 16.13% of the total market. Koshi Province followed with Rs 25.17 billion (12.30%).
Gandaki Province collected Rs 21.30 billion (10.41%), while Madhesh Province generated Rs 19.13 billion (9.35%). Sudurpashchim Province contributed Rs 12.82 billion (6.27%), and Karnali Province recorded the smallest share with Rs 6.21 billion, accounting for just 3.04% of total premiums.
The data highlight a significant regional imbalance in Nepal’s life insurance market. While Bagmati alone accounts for almost half of all premium collections, provinces such as Karnali, Sudurpashchim and Madhesh continue to contribute relatively small shares, underscoring the need for insurers to expand outreach and improve insurance access in rural and remote areas.
