The life insurance market in Nepal has been growing mainly due to favourable government policies, rather than through the marketing efforts of insurance companies or growing insurance awareness among the general public.
Data from the Beema Samiti, which is the insurance regulator, reveal that most life insurance policies are being purchased as a result of compulsory rules that the government has introduced for outbound workers, reported Himalayan News Service.
The compulsory cover, for Nepalese going to work overseas, accounts for around 50% of the total number of life insurance policies issued in the country, according to the regulator.
The eight life insurance firms in operation in the country issued over 2.3 million life insurance policies in the fiscal year to 15 July 2016, of which the share of foreign employee policies stood at over 1.1 million, which was 49.35% of the total policies sold. In FY2015, the percentage was 45%.