In Nepal, fewer people are surrendering their life insurance policies. Data from the Nepal Insurance Authority shows that in the first three months of this fiscal year, 22,999 policies were surrendered, worth Rs. 348.85 crore.
Compared to the same period last year, the number of surrendered policies dropped by 18.03%, and the total amount decreased by 8.79%. Last year, 28,057 policies were surrendered, totaling Rs. 382.46 crore.
Efforts to Keep Policies Active
Insurance companies and regulators are working to reduce policy surrenders. They are running awareness campaigns and insurance literacy programs in collaboration with local authorities to educate people about the benefits of life insurance.
Unpaid Policies Still Rising
Even though fewer policies are being surrendered, the number of policies not renewed is increasing. Currently, 12,20,548 policies remain unpaid, a 1.86% rise from last year’s 11,98,295.
The total unpaid insurance amount has also grown, reaching Rs. 3,678.67 crore, up 4.98% from last year’s Rs. 3,507.20 crore.
This shows that while people are holding on to their insurance policies more than before, many are still letting them lapse without renewal.
