July 23: Life Insurance companies have collected more insurance premium than the monthly average in the last month of Fiscal Year 2020/21, according to the data provided by the Insurance Board. There are 19 life insurance companies operating in Nepal.

During the review period (mid-June to mid-July), those life insurance companies collected insurance premium of Rs 18.48 billion which is three times more than the average monthly collection. On an average, insurance companies collect Rs 5 to 6 billion insurance premium every month.

However, collection of insurance premium was more than Rs 18 billion during the last months of FY 2020/21 as the financial activities increase during the last month. Insurance agents are found working hard to meet their target during this period. Most of the insurance policies are also renewed during this period. This is the reason why collection of insurance premium has increased during this period, according to the  insurance companies.

The business of life  insurance companies were badly affected until mid-June due to the impact of coronavirus. However, data show the insurance business was encouraging between mid-June to mid-July.

Data provided by the Insurance Board show that the average monthly  collection of insurance premium was between Rs 5 to 6 billion as of mid-May. Insurance companies had collected insurance premium of Rs 5.2 billion in the month of Baishakh (mid-April to mid-May) which further slumped to Rs 3.31 billion the next month (mid-May to mid-June). However, it picked up pace again in the month of Asar (mid-June to mid-July).

During the last fiscal year (FY 2020/21), life insurance companies collected insurance premium worth Rs 120.95 billion, which is more than the insurance premium collection of the previous fiscal year by 28.15 percent. In Fiscal Year 2019/20, the 19 life insurance companies had collected insurance premium worth Rs 94.38 billion.