KATHMANDU, June 12, 2012
Premium income of life insurance companies rose 23.74 percent over the first nine months of the current fiscal year, as sales and renewal of insurance policies went up.
A total of nine life insurance companies generated premium income of Rs 9.03 billion in the nine-month period till mid-April compared with Rs 7.29 billion earned in the same period last year, according to data provided by the Insurance Board -- the insurance sector regulator.
“The revenue went up as greater awareness on benefits of purchasing life insurance products, especially in rural and suburban areas, pushed up sales of insurance policies,” said Bharat Basnet, CEO of National Life Insurance. “Significant contribution was also made by our past clients who decided to renew their policies.”
Till the third quarter, life insurance companies generated Rs 3.03 billion by selling new insurance policies, while Rs 6 billion was generated through renewal of old policies.
Statistics shows Nepal Life Insurance contributed almost 24 percent to the revenue generated by life insurers, generating premium income of Rs 2.15 billion in the nine-month period, up 35.2 percent from same period last year. This made the insurance company the top life insurer in terms of premium collection.
Life Insurance Corporation took the second position in terms of premium income, collecting Rs 1.69 billion till the third quarter, a rise of 30.9 percent over last year´s figure. National Life Insurance came third generating a revenue of Rs 1.34 billion in the nine-month period, up 24.7 percent from same period last year.
Life insurance companies generated most of the revenue by selling and renewing traditional endowment policies - the most famous life insurance product in the market that usually matures on average of 15 years. Sales and renewal of these policies generated Rs 4.36 billion, or 48 percent of the total premium income of life insurance companies, the Insurance Board report shows.
Sales and renewal of endowment-cum-whole-life policies were also brisk during the period, as the product generated revenue of Rs 1.91 billion for insurers in the review period, up 22.6 percent.
The Insurance Board report, however, shows whole life insurance policies have lost their charm, as the product which accumulated Rs 135.92 million over the period in the last fiscal year was not able to generate any income this fiscal year.
“The product is not preferred by many as payments on these policies are made only after death of the person who has bought the product,” said Basnet.
Source: Republica
Premium income of life insurance companies rose 23.74 percent over the first nine months of the current fiscal year, as sales and renewal of insurance policies went up.
A total of nine life insurance companies generated premium income of Rs 9.03 billion in the nine-month period till mid-April compared with Rs 7.29 billion earned in the same period last year, according to data provided by the Insurance Board -- the insurance sector regulator.
“The revenue went up as greater awareness on benefits of purchasing life insurance products, especially in rural and suburban areas, pushed up sales of insurance policies,” said Bharat Basnet, CEO of National Life Insurance. “Significant contribution was also made by our past clients who decided to renew their policies.”
Till the third quarter, life insurance companies generated Rs 3.03 billion by selling new insurance policies, while Rs 6 billion was generated through renewal of old policies.
Statistics shows Nepal Life Insurance contributed almost 24 percent to the revenue generated by life insurers, generating premium income of Rs 2.15 billion in the nine-month period, up 35.2 percent from same period last year. This made the insurance company the top life insurer in terms of premium collection.
Life Insurance Corporation took the second position in terms of premium income, collecting Rs 1.69 billion till the third quarter, a rise of 30.9 percent over last year´s figure. National Life Insurance came third generating a revenue of Rs 1.34 billion in the nine-month period, up 24.7 percent from same period last year.
Life insurance companies generated most of the revenue by selling and renewing traditional endowment policies - the most famous life insurance product in the market that usually matures on average of 15 years. Sales and renewal of these policies generated Rs 4.36 billion, or 48 percent of the total premium income of life insurance companies, the Insurance Board report shows.
Sales and renewal of endowment-cum-whole-life policies were also brisk during the period, as the product generated revenue of Rs 1.91 billion for insurers in the review period, up 22.6 percent.
The Insurance Board report, however, shows whole life insurance policies have lost their charm, as the product which accumulated Rs 135.92 million over the period in the last fiscal year was not able to generate any income this fiscal year.
“The product is not preferred by many as payments on these policies are made only after death of the person who has bought the product,” said Basnet.
Source: Republica
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