Kathmandu – The Nepal Insurance Authority (NIA) has initiated a study to assess women’s access to insurance through the use of a gender-analysis tool called ‘FEMMAMeter’. Until now, insurance-related gender-specific data has been largely unavailable in Nepal. To address this gap, the Authority has started collecting data on insured women using the FEMMAMeter toolkit.

According to data from the Ministry of Finance, about 44% of Nepal’s population is currently covered by some form of insurance, much of which is contributed by term policies linked to foreign employment. However, this statistic does not distinguish between male and female policyholders, a gap that has long remained unaddressed by regulators, insurance companies, and government bodies.

Speaking on the initiative, NIA Director Pujan Dhungel stated that the use of the FEMMAMeter aims to analyze gender-disaggregated data to better understand women’s access to insurance services. This tool will also support the formulation of gender-sensitive policies and identify the services and improvements needed for women in the insurance sector. Dhungel emphasized that this is the first such initiative in Nepal, and the data generated will facilitate future analysis of gender dynamics within the industry.

Promoting Gender Equality in Insurance Employment

Nepal’s insurance industry contributes significantly to the national GDP and currently provides direct employment to over 12,000 individuals, according to the Authority. However, gender-specific employment data is still lacking. This initiative will also assess the representation, roles, and opportunities for women working in the insurance sector. United Ajod Insurance’s Deputy CEO Rena Rijal noted that FEMMAMeter could be a valuable tool for women already in the sector and those aspiring to join, promoting gender equality in insurance jobs.

Women Hold 57% of Insurance Policies

Although there is no comprehensive gender-wise data maintained by the Insurance Authority, insurers, or the Ministry of Finance, initial findings using FEMMAMeter have revealed key insights. Women account for approximately 57% of total policyholders, compared to 43% male policyholders. Despite their greater share in numbers, women pay an average premium of NPR 9,600 per policy, which is lower than the NPR 12,000 average paid by men. This suggests that although more women are insured, they tend to purchase lower-value policies.

This discrepancy highlights the need for strategic planning that considers the type and value of policies purchased by women. Such data can guide both the government and insurers in designing more inclusive products and policies.

Interestingly, insurance companies appear to earn more profit from female policyholders. According to a World Bank report, 59% of total insurance claims come from men, while only 41% are filed by women. This indicates that male policyholders may be more prone to risk, health issues, or negligence. Additionally, average claim payouts for men are around NPR 180,000 compared to NPR 145,000 for women.

The data also shows that 40% of agents in life insurance are women, while only 28% of general insurance agents are female.

Strategic Planning Through Data

Collecting gender-disaggregated data will enable insurers to develop women-centric strategies and products. “Until now, we had no solid statistics on women’s participation and reach in insurance,” Dhungel told Banking News. She emphasized that using advanced tools like FEMMAMeter could significantly aid the development and expansion of the sector by providing accurate insights.

The FEMMAMeter tool, developed by the Access to Insurance Initiative (A2II), is designed to analyze gender-based data within the insurance sector. The Excel-based interface allows insurers, regulators, and policymakers to input data such as policyholder numbers, claims, and premiums, disaggregated by gender. It then automatically analyzes disparities and trends over time, helping identify inequalities and inform targeted strategies.

Currently, Nepal has 14 life and 14 general insurance companies, along with 7 micro non-life insurers and 2 reinsurance companies. While some life insurers collect gender-specific data, non-life insurers typically do not. Furthermore, gender-based data analysis has not been a standard practice across companies.