The foreign employment insurance sector has emerged as a lucrative opportunity for life insurance companies operating in Nepal. With the Nepal Insurance Authority (NIA) implementing the mandatory foreign employment insurance policy on January 15, 2019, 11 out of the 14 life insurance companies in the country have swiftly embraced this growing market segment.
Recognizing the vast potential, major players such as Nepal Life, National Life, Life Insurance Corporation (LIC) Nepal, IME Life, Met Life, Reliable Nepal, SuryaJyoti Life, Sun Nepal Life, Citizen Life, Prabhu Life, and Sanima Life have all ventured into providing foreign employment insurance to migrant workers. The only exceptions are Rastriya Jivan Beema Company, Asian Life Insurance, and Himalayan Life Insurance, which have yet to enter this burgeoning sector.
The latest data published by the NIA reveals the significant financial implications of this strategic move. In the last 10 months alone, life insurance companies have collectively earned an impressive Rs 2.58 billion in premiums from foreign employment insurance policies. This translates to an average monthly premium collection of Rs 1.75 million per company, highlighting the lucrative nature of this insurance segment.
Furthermore, the data unveils that these companies have issued a staggering 71,073 units of foreign employment insurance policies during this period. The month of Baishakh (April/May) alone witnessed premium collections amounting to Rs 207.1 million, underscoring the growing demand for such insurance products among migrant workers.
As Nepal continues to be a major source of migrant labor, with thousands of citizens seeking employment opportunities abroad, the foreign employment insurance sector presents a significant growth opportunity for life insurance companies. By offering comprehensive insurance coverage tailored to the needs of migrant workers and their families, these companies are not only tapping into a lucrative market but also contributing to the overall financial security and well-being of Nepal’s expatriate workforce.
With the potential for further growth and increased awareness among migrant workers, the foreign employment insurance sector is poised to become an increasingly important revenue stream for life insurance companies in Nepal.
