News of Insurance – The insurance sector, which plays a significant role in Nepal’s Gross Domestic Product (GDP), has provided direct employment to over 12,000 people, according to the latest data from the Nepal Insurance Authority. This highlights the sector’s growth and its emergence as a key industry generating thousands of jobs.

Currently, Nepal has 37 insurance companies operating in life, non-life, reinsurance, and microinsurance. As of the ongoing fiscal year up to the month of Falgun, these companies have directly employed 12,095 individuals. Comparatively, during the same period last year, the figure stood at 11,555—marking an increase of 540 jobs. The breakdown shows 6,074 employees in life insurance companies and 6,021 in non-life insurance firms.

The employment rate in life insurance has increased by 4.33%, while non-life insurance has seen a 5.02% rise compared to the previous year. The majority of these jobs include roles in insurance companies, agencies, surveyors, and brokers, indicating the sector’s expansion and economic significance. However, public trust and awareness about insurance remain a challenge.

“We have provided employment to 12,000 people, which is a significant achievement. However, unless the importance and benefits of insurance reach the grassroots level, the sector’s full potential cannot be realized,” says insurance expert Rabindra Ghimire. He points out that insurance services remain underdeveloped in rural areas and are not a priority even in urban regions. While the Insurance Authority has conducted awareness campaigns, their effectiveness is being questioned.

Despite having 37 insurance companies providing direct employment to over 12,000 people and indirectly supporting thousands more, the sector has yet to fully realize its growth potential. Currently, insurance coverage in Nepal stands at only 44% of the population, whereas the government aims to extend it to at least 50%.

With significant room for expansion, increasing public awareness and accessibility to insurance services is crucial. If coverage reaches the government’s target or surpasses 50%, the industry could create even more employment opportunities.