Growth of Insurance in Nepal in Post Liberalization Period

Growth of Insurance in Nepal in Post Liberalization Period

Abstract Rabindra Ghimire1

In this study, the paper explores the growth of insurance during the post liberalization period (1992 – 2012) in Nepal. The

paper presents the volume of insurance business and its development, explains the direction of insurance growth, discuses the

insurance density and penetration, status of reinsurance, number of human resource and contribution to GDP. The paper

concluded that the growth of insurance in pre liberalization period was slower than in post liberalization period. Number of

insurance companies were 5 before 1992 but increased by five folds during 1992 - 2012. Comparing with neighboring

countries, insurance growth of Nepal is found below the satisfactory level. Out of 25 insurance companies 1, 8 and 16

companies are running both, life and non life insurance business respectively. Among these companies, 1 company is

government owned, 3 /3 are joint venture and foreign branches and 18 are privately owned. The growth of insurance in

different years hasn't showed consistent movement. Contribution of service sector in national level is higher than 50 percent

but in Nepal, Insurance contribution to GDP is superficial. Similar to bank, insurance companies also contribute to enterprises,

individual and economy through channelizing the resources in one hand and indemnify the loss in another hand.

Key words: Insurance companies, life insurance, non life insurance, insurance density and penetration, growth of insurance

industries, growth of insurance, financial performance.

I. Overview of Insurance industries:

Insurance is a system of spreading of probable risk to many exposures by pooling certain amount from all risk exposures to

make easy to share the loss. It is a contractual arrangement which provides partial or total protection against adverse,

typically financial outcomes. (Ranada & Ahuja:1999). In ancient society, the risk was managed by members of the community in a different ways. Modern insurance is quite different from the ancient risk sharing systems. The first insurance

policy was marine insurance followed by fire and life insurance. Nowadays, uncountable and unbelievable numbers of

policies are available in the market.

The basic objectives of insurance is to indemnify the insured from the financial loss. In addition with protection to insured,

insurance companies are financial intermediaries which accumulate the funds and channelized the saving in national

development and help in economic growth.

Before 1947, branches of Indian insurance companies sold their policies in Nepal. Formal history of insurance began after

establishment of Nepal Insurance Company in 1947. During 1947-1991 period, 2 companies ( life and non life ) were

established in 100 per cent Indian investments, 1 company established as government owned and 1 company established in

joint venture. In 1992, insurance After government implemented financial liberalization policy as a result additional 20

insurance companies. In 1992, Insurance Act, 1992 enacted, Insurance Board was established and further 20 new insurance

companies were established. Among 20 companies, 7 are domestic private sector and 3 are joint ventures. The credit of such

rapid growth on size of insurance companies goes government adopting open market economy and liberalization policy and

Insurance Board have been creating conducive environment by issuing numbers of guidance, policies and directives.

On the basis of regulating provision, the history of insurance can be divided in three stage: pre committee period (till 1967),

pre board period (1968 to 1991) and board period (1992 to till date).

Before 1968, there was lack of insurance related acts and rules, institutional arrangement for insurance regulation, insurance

policy. Insurance market was in premature stage. Size of market was very small. During 1968 to 1991 period, Insurance Act,

1968 was enacted; Insurance Committee was formed but regulating mechanism was not matured and market size also not grown up.

The period from 1992 to till date is known as board period since board was established in 1992 as autonomous body and apex

institution for insurance regulations. During this period, sets of rules, policies, guidelines and directives are formed with

fullfledge institutional arrangement. The board has been played different roles as market developer, supervisor, guardian and

semi judicial institution. During the period, number of insurers increased by five folds, market also expanded and gaining

maturity gradually.

The global insurance market for 2010 was worth US $4,339 billion, with 6.7 percent of growth from 2001-10. Insurance

premiums have strong positive correlation with GDP growth and the emerging and developing markets have been growing

faster than the advanced economies. During 2001-10, advanced economies registered a GDP growth of 5.6% and emerging

1 Assistant Professor, School of Business, Pokhara University, Kaski, email: [email protected]

Growth of Insurance in Nepal in Post Liberalization Period Rabindra Ghimire of 10

and developing economies grew at higher than average growth rate of 13.9%. Insurance growth is impacted by number of

factors such as economic growth, education, income of population; regulation, distribution channel and awareness are some

of the most important factors. Non life insurance is furthermore affected by government policy, natural catastrophe exposure

whereas life insurance is affected by market interest rate, tax benefits and economic stability. (GCC: 2011).

Nepal is one of the least developed countries having 26.6 million of population. 83 percent population reside in rural area, 42

percent population is living below the poverty line, per capita GDP is $73. Currently 117 banks, financial institutions and

finance companies are providing financial services. Out of total resource mobilization, insurance sector contributes less than

1 per cent.Financial intermediaries sector achieved 3.5 percent growth in FY 2010/11. Per capital GDP of Nepalese insurance

market is still in late development and transitional stage. Insurance industry in Nepal has been characterized by inadequate

and ineffective supervision, inadequate financial and prudential regulations, lack of innovative insurance products and

monopoly of state owned insurance companies. The market share structure has been highly skewed towards state owned insurance companies. (Economic Survey, 2012)

In 2004/05 ratio of life insurance and non life insurance with population was 1.26 percent and 0.99 percent respectively. In

FY 2009/10, the per cent was grown to 2.77 and 1.84 respectively. These figures show that the life insurance market is

growing faster than non life insurance market. In 2011/2012, insurers succeeded to collect Rs. 19700 million of premium and

invest Rs. 56300 million in different portfolios.( IB:2012).

During the post liberalization period ( after 1990), number of insurance policies have been introduced to cater the demand of

the different customers by different ways. Benefits and facilities between the insurance products of different insurers have

some similarities. Currently, numerous products are available in market which is in case of life insurance policy, it ranges

from 5 types to 15 types and in case of non life insurance policies ranges from 6 to 43 policies.

II. Review of Literature

In this section, I have summarized findings and major issues of some important studies and reports on

current scenario of insurance, growth and structure of insurance market. The main purpose of this study is to assess current

structure and growth direction of the insurance market. Very few research literatures are available written about the insurance

in Nepalese context.

During 1940s, mostly Indian insurance companies met the insurance need of Nepal. In eve of Rana Regime, Nepal Insurance

and Transport Company (currently known as Nepal Insurance Company co.) was established in1947 by Nepal Bank Ltd. as

its subsidiary company. It was the only national insurance company till 1968. The report further described the history of

insurance that Indian insurance companies including Life Insurance Corporation of India (LIC) were the life insurance service

provider in Nepal till 1972. Rastriya Beema Sansthan had started to operate life business from 1972 and in the same year LIC

voluntarily withdrew from the Nepalese market. (Insurance Board, 2012).

Insurance Regulations, 1993 restricts insurer to spend management expenses more than twenty-five percent in case of Marine

Insurance and more than thirty percent in case of other Insurance out of the total amount of the income from premium while

operating the Insurance Business, provided that, the amount spent for the establishment and mechanization of the Insurance

office shall not be included in the management expenses. (Insurance Regulation, 1993)

Insurance Pool Nepal was established in 2003 to manage reinsurance for terrorism risk of Nepalese insurers from one door. It

has 50 percent equity participation of Nepal Government and remaining 50 percent of Nepalese insurers. It is now being run

not as a company, but in the process of being converted into company in the future. (IB, 2012)

Gupta (2011) observed that Insurance penetration is low in Asia as compared to other continents. However, the growth rate of non-life insurance penetration had been impressive over the years. Hence, it safely categories Asia as an emerging market.

Erlach & Faug`ere (2006) concluded that long-run equity premium is theoretically and empirically consistent with GDP

growth and a portfolio insurance motive.

According to Arena (2006), emerging markets have recently experienced significantly faster real growth of their insurance

sectors than industrialized countries (52 percent versus 27 percent between 1997 and 2004), reflecting liberalization and

financial integration after the implementation of structural reforms.

Skipper (1997) highlighted importance of insurance activity, both as a provider of risk transfer and indemnification and as an

institutional investor, may contribute to economic growth by promoting financial stability, facilitating trade and commerce,

mobilizing domestic savings, allowing different risks to be managed more efficiently encouraging the accumulation of new


capital, fostering a more efficient allocation of domestic capital, and helping to reduce or mitigate losses. The role of

insurance companies in the allocation of resources has not been studied as extensively as that of banks.

III. Objectives The present paper is an attempt to study the ownership structure and growth of insurance market and analyze the scenario

after adopting liberalization policy. For this purpose, various indicators like growth in total number of insurers, growth in

number of individual agents working in life insurance industry, number of products, growth of life insurance business and

premium income, insurance penetration and density of life and non life insurance industry is analyzed.

IV. Data Collection and Analysis The study is based upon insurance companies of Nepal including 9 life insurance and 16 non life insurance companies.

Secondary data has been collected from annual reports and publication of Insurance Board, websites of Insurance Board,

publication of Insurance Companies and Economic Survey. Information and reports published by foreign insurers and

international insurance related organization also used. The data used in the paper covers the period from 2003-04 to 2011-12

but in some cases. For the analysis of data, statistical tools like percentages, ratios, growth rates are used. Pie charts, trends

and bar diagram are also use to present the data.

V. Analysis and Discussion This section analyzes the data and discusses on various issues like: number of insurers established in different periods,

ownership structure of insurers, insurance policies, financial performance, premium collection, investments fund,

reinsurance, insurance penetration and density, employees and agents and density, employees, agents and brokers and

contribution to GDP.

A. Number of insurers in Pre and Post Liberalization Period: In 1980s, government decided to open the financial sector to private sector but liberalization policy effectively implemented in 1992, after enactment of Insurance Act, 1992. So that, for this study the period before 1992 is called pre

liberalized and after 1992 is called post liberalized period. Before 1992, 2 life insurance ( 1 government owned and 1

joint venture) and 4 non life (1 government owned, 1 domestic and 1 joint venture and 2 foreign branches) were

established. After liberalized policy adopted in insurance sector, 300% more insurance ( 7 life and 14 non life) are

established. The aggregate growth rate is 300 percent whereas life and non life insurance growth is 200 percent and 250

per cent respectively. Details of each type of insurance growth is shown in table 1.

Table 1: Establishment of Insurance Companies in different period, different ownership structure

Ownership Type Pre 1992 After 1992 Total Grand

Total

Growth

Pre &

Post Life Non

Life

Total Life Non

Life

Total Life Non

Life

Government Owned 1 1 1 0 0 0 1 1 1* 0%

Domestic Private 0 1 1 5 11 15 4 12 16 1400%

Joint Venture 1 0 1 1 3 4 2 3 5 300%

Foreign Branch 0 2 2 1 0 1 1 2 3 -50%

Total 2 4 5 7 14 20 8 18 25 300% Source: Annual Report, 2011; Insurance Board and authors' calculation

*Same organization is running both life and non life business so total number of organization is 1.

B. Insurers on the basis of ownership structure: On the basis of equity ownership, now four types of insurance companies are in existence: government owned domestic,

joint venture and foreign branch. Liberalization policy has allowed foreign insurers to open their branches in Nepal. On

the basis of ownership structure, there is 1 (4%) company government owned, 18 (72%) companies established by 100

percent domestic private sector, 3 (12%) companies established by national and foreign investors and 3 (12%) are

established as branches of foreign insurers.

Figure 2 shows the ownership structure of insurers. There is domination of domestic investors which is followed by joint

venture and foreign branches.

Fig 1: Types of insurers on the basis of ownership structure


C. Volume of Insurance Policies: Policy is an agreement between insured and insurer. Policy is major product of insurance companies. Insurers prepare

different kinds of insurance policies targeting to different customers. In FY 2003/04, total 2,49,000 policies were sold

whereas in FY 2009/10 policies reached total 4,76,000 numbers. Average growth rate of policy sold during the period

was 30 percent but in different years the growth rate varied from –2 percent to 118 per cent. Figure 2 depicts life and non life policies sold during FY 2003/04 - 2009/10.

Rs in 000

Fig. 2 : Number of policies sold during FY 2003/04 to 2009/10

D. Financial Performance

Financial performance of insurers can be measured different ways. This paper analyses the direction of growth of premium

and investments for the study period. Number of insurers and its policies sold by insurers, amount of premium collected and

invested, total assets and liabilities of insurance companies, employees, agents and brokers engaged in insurance industries

are basic components of this study. Earnings, dividend, total assets, total reserves and surplus of insurers are variables to

measure the financial performance of insurers.

i. Premium Collection:

Government owned, (1) 4%

Domestic Private sector

(18) , 72%

Foreign Branch, (3)

12%

Joint venture, (3)

12%

Ownership structures of insurers

Government owned

Domestic Private sector

Foreign Branch

Joint venture

0

100

200

300

400

500

600

700

800

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10No. of Life Insurance Policy ( in 000) No. of Non Life Insurance Policy ( in 000)


Premium is major components of insurance income. Life insurance premium is obtain from two sources: premium from new

policyholders and existing policyholders. General insurance policy requires to renew every year and all the procedures need

to follow as completely new policy. The aggregate premium of non life exceeded to aggregate premium of life insurers in FY

2003/04 but from second year life insurance premium exceeded to non life insurance premium. The premium collected by

the life and non life insurance companies from 2003/04 to 2011/12 is shown in the table 2.

Table- 2: Premium collected by insurers in different FY ( 2003/04 - 2011/12)

Rs. in million

FY 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Life Insurance premium 2724.8 3355.5 4123.5 4838.7 6500 8766 10422.2 11600

Non Life Insurance Premium 2692.9 2854.9 3288.9 3851.9 4420.4 6496.7 7063.9 8100

Total 5417.7 6210.4 7412.4 8690.6 10920.4 15262.7 17486.1 19700

The average growth rate of life insurance premium during the eight year was 23percent but non life premium was only 17 percent

for the same period. Life insurance growth was found more consistent than non life insurance growth rate.

Fig. 3: Growth rate of Premium collected by insurers from 2003/04 to 2011/12

ii. Investments of insurers' fund: Insurer possesses large amount of fund which is received from customers from long years back which need to repay to depositors

as and when necessary. The fund need to invest in secured and profitable sector as per the directives of insurance board. Insurers

need to maintain appropriate level of liquid fund to meet the short term liabilities, to increase the earnings through forming better

investment portfolios and to ensure long term sustainability. Fig 4 shows the growth of investment, its direction and

characteristics. The amount of investments of insurer increased gradually each year as theirs insurance income increase.

As premium amount increases, investments amount also increases in the same proportion. But, other sources of income in the

firm also determines the volume of the investment. To maintain the certain degree of solvency, investment is compulsory. Life

and non life insurers have different types of growth experienced. The growth rate of both types of investments had no

consistency during the period. Comparatively, life insurance investments fund fluctuated more than non life insurance

27%

23% 23%

17%

34% 35%

19%

11%

15%

6%

15%17%

15%

47%

9%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Life Insurance Non Life Insurance


investment fund. It is quite difficult to predict the future investments scenario.

Fig 4: Growth of investments of Life and non life insurers.

iii. iii. Management Expenses iv. Profitability of life insurers is influenced by amount of income, management expenses and other expenses. During the last five

years, management expenses ratio, profit margin ratio, return on equity and return on assets, return from investment and loan

were fluctuated heavily which is shown in table 3.

Table- 3: Overview of life insurance Sector

FY 2006/07 2007/08 2008/09 2009/10 2010/11

Management Expenses ratio 11% 59% 17% 43% 30%

Profit margin 81% 20% 80% 62% 53%

Return on Equity 15.14% 0.57% 16.40% 5.65% 7.63%

Return on Assets 1.24% 0.08% 1.93% 0.61% 0.74%

Return from Investments and Loan 0.43% 0.61% 0.94% 1.11% 0.95%

Ratio of investment income on Total income 24.11% 105.44% 24.78% 56.87% 46.55%

Current Ratio 2.5 6.66 5.46 7.32 3.1

According to insurance rules, management expenses ratio should not exceeds by 30 percent, but the rule was violated by

insurers in different fiscal years. The return from investments and interest from loan are significant sources of income for

insurers. The return was not more than 1.11 percent which means the insurers' investments was not properly utilized or

insurer rate of return on portfolio is not good. Generally, investors expect more rate of return on equity than prevailing

interest rate. Return on total assets was less than 2 percent that means insurers' assets utilization capacity is not satisfactory.

Insurers' overall earning capacity depends on two factors: premium income and income from investments. Table 3 shows

almost 50 per cent income was contributed by investments return although rate of return on investments was lower than risk

free rate. Insurers need to be aware on maximum utilization of their current assets. Considering the current ratio for last five

years, insurers assets was not maintained systematic way. Current ratio was fluctuate from 2.5 times to 7.32 times.

It is because large amount of assets was not invested in productive sector. Current ratio ranged from 2.5 times to 7.32 times.

29%

21%

11%

30%

13%

43%

11%

6%7%

21%20%

18%

26%

16%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Growth of Investments by Life insurers Growth of Investments Non Life insurers


v. Reinsurance of Life insurance Reinsurance industries plays vital role for the development of insurance industries. It is backbone of the insurance business. It

is becoming an integral part of the insurance business. We have still lack of reinsurance company so that, every year, large

amount of premium have been flight to foreign countries as reinsurance premium since reinsurance is compulsory for

insurance company. In FY 2006/07, Rs. 29 million was paid as reinsurance premium and Rs. 2 million was received from

insurers against the claim. In FY 2010/11, the premium was reached to Rs. 1556 million and Rs. 152 million of claim was

recovered. During five years period premium increased by 53 folds and claim increased by 71 folds. The CAGR of premium

paid and claim recovered for five years period is 270 percent and 291 percent. Reinsurance premium paid to foreign

companies is and claim recovered for the same period has shown in table 5.

Table 4: Reinsurance premium and claim for Life insurance

FY 2006/07 2007/08 2008/09 2009/10 2010/11

Payment of reinsurance

Premium ( Rs. in million) 29 49 213 1,597 1,556

Claim Recovered from

Reinsurers ( Rs. in million) 2 7 39 69 152

vi. Insurance penetration and density

The potential and performance of the insurance sector is universally assessed with reference to two parameters: insurance

penetration and density. The measure of insurance penetration and density reflects the level of development of insurance sector

in a country. Insurance penetration is ratio between insurance premium by GDP whereas insurance density is ratio between

insurance premium and number of population. In FY 2004/05 insurance density was 6 and 10 times less than density of India and China respectively. But, in FY 2009/10, the ratio increased to 15 and 27 times. Comparing to India and China, Nepalese

insurance growth is very low. Comparing the insurance penetration of Nepal with India and China, it is 2 times less than India

and 4 times less than China in FY 2009/10. In 2008, average penetration rate in OECD countries was 8.6%. Table 6.1 shows

insurance density and 6.2 shows insurance penetration of Nepal, India and China for 6 years period.

Table 5.1: Insurance Density

FY 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Nepal ( US $ ) 3.1 3.5 4.2 5.3 5.6 7.9

India ( US $ ) 18.3 33.2 40.4 41.2 47.7 52.2

China ( US $ ) 30.5 34.1 44.2 71.7 81.1 93.6

Source: Insurance Board and IRDA, 2011

Table 5.2: Insurance Penetration

FY 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Nepal (%) 0.56 0.57 0.64 0.71 0.78 1.1

India (%) 2.53 4.1 4 4 4.6 4.9

China (%) 1.78 1.7 1.8 2.2 2.3 2.6

Source: Swiss Re, 2011 and Insurance Board.

In FY 2011/12, growth of insurance density decreased by 2 percent points and insurance penetration was negative (-2%). Theory

suggests that developing countries have large market potentiality so that the growth rate should be positive but this is not true in

case of Nepal.


Fig: 5: Growth of insurance density and penetration

vii. Employees, agents and brokers Insurers spend large amount of their income to pay the commission for agents and brokers. Regular staffs are paid regular

remuneration. Professionally smarts agents and employees really helpful to increase the financial performance of the insurers by

increasing sales revenue and promoting the image of the insurer in the society. During last 8 years.

Fig 6: Employees, Surveyor s and Agents in different years

viii. Contribution of Insurance in GDP Insurance sector provides nominal contribution on GDP. The overall contribution of service sector to GDP is highest than

industry and agriculture but insurance sector's contribution is not so significant. In FY 2004/05, the contribution was 0.96

percent which was increased to 1.41 percent in FY 2011/12.

The size of insurance business can be measured by different perspective. There are various activities related to insurance:

number of policies issued, amount of premium collection, total sum assured are some indicators that determines the size of the

insurance business. Internal size based on financial resources, profit and retained earnings, no. of branches of insurer, full time

employees and agents and brokers associated with the insurer.

13%

18%16%

24%

38%

13%11%10%

16%

11%

21%

35%

16%

-2%-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Growth of Insurance Density Growth of Insurance Penetration

0

20000

40000

60000

80000

100000

120000

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Employee, Surveyors and Agents

Employee, Surveyers and Agents

Expon. (Employee, Surveyers and Agents)


E. Conclusion Analysis concludes that although insurance market is yet to be matured and the growth of market compare to neighbouring

countries is too low, the direction of growth and scenario of development of insurance for last twenty years is satisfactory. The

growth of insurance market in Nepal was very slow before establishment of Insurance Board. We have seen significant changes

in insurance sector while government implemented liberalization policy effectively by 1992.

Insurance Board being a regulator of insurance has been playing active role for the promotion and development of insurance

industries. As a result, private investments increased significantly, number of insurers reached to Tweny Five. During the last 8

years, insurance premium and investments average growth rate is 21 percent and 35 percent respectively, the contribution to

GDP was increased from 0.96 percent in 2004/05 to 1.41 percent in FY 2011/012. Total employees including staffs, agents and

surveyors were 21,241 in FY 2004/05 which increased by 380 percent and reached to 1,01,921 in FY 2011/012. From FY

2004/05 to FY 2011/012, amount of premium and investments were increased by 263 and 280 percent respectively. Average

annual growth of insurance density and penetration for same period was 19 percent and 15 percent respectively.

Some weakness are also observed during the period. The growth is not consistent. Insurers have lack of management efficiency.

Large market is still far from insurance services. The sluggish insurance growth need to break through intensive marketing and

collaborative efforts between public and private sectors. The scope and rights of Insurance Board also need to be broaden

through amendments of prevailing laws.

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http://www.jstor.org/stable/4407582

http://www.jstor.org/stable/4407582


Annex- 1

1. Life Insurance Co.

Name of Company Date of

establishment

Types

of

Policies

Sold

Listed share

in NEPSE in

million

Ownership structure*(%)

D / F

1. Rastriya Beema Sansthan 1968/12/15 8 99.5138 100 / 0

2. National Life Insurance Co. Ltd 1988/01/07 15 Not Listed 90 /10

3. Nepal Life Insurance Co. Ltd. 2001/04/17 10 375 100 / 0

4. Met Nepal American Life Insurance Co. (ALICO) 2001/08/02 8 Not Listed 0 /100

5. Life Insurance Corporation (Nepal) Ltd 2001/08/07 8 250 45 / 55

6. Asian Life Insurance Co. Ltd 2008/02/27 8 0 100 / 0

7. Surya Life Insurance Co. Ltd 2008/03/19 7 360 100 / 0

8. Gurans Life Insurance Co. Ltd 2008/03/31 5 360 100 / 0

9. Prime Life Insurance Co. Ltd 2008/05/06 6 360 100 / 0

2. Non -Life Insurance Co.

Name of Company Date of

establishment

Types of

Policies

Sold

Listed share in NEPSE

in million

Ownership structure* (%)

D / F

1. Nepal Insurance Co. Ltd 1947/09/24 6 102.70 100 / 0

2. The Oriental Insurance Co. Ltd 1967/09/15 18 Not Listed 0/100

3. Rastriya Beema Sansthan 1968/12/15 18 99.51 100 / 0

4. National Insurance Co. Ltd 1974/01/01 37 308.52 0/100

5. Himalayan General Insurance Co. Ltd. 1993/07/21 16 100.80 100 / 0

6. United Insurance Co.(Nepal) Ltd 1993/10/22 7 100.80 100 / 0

7. Premier Insurance C o.( Nepal) Ltd 1994/04/21 14 102.00 100 / 0

8. Everest Insurance Co . Ltd 1994/05/31 6 101.25 100 / 0

9. Neco Insurance Ltd. 1996/5/30 43 115.50 100 / 0

10. Sagarmatha Insurance Co. Ltd 1996/06/26 22 102.10 80 /20

11. Alliance Insurance Co. Ltd. 1996/07/19 12 147.59 100 / 0

12. N.B. Insurance Co. Ltd 2057/10/09 20 141.96 100 / 0

13. Prudential Insurance Co. Ltd 2002/05/03 25 100.00 100 / 0

14. Shikhar Insurance Co.Ltd 2004/10/04 12 125.00 100 / 0

15. Lumbini General Insurance Co.Ltd 2005/07/15 6 125.00 100 / 0

16. NLG Insuran ce Company Limited 2005/10/09 6 Not Listed 100 / 0

17. Siddartha Insurance Limited 2006/04/05 14 100.00 100 / 0

D = Domestic, F= Foreign

Growth of Insurance in Nepal in Post Liberalization Period

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