KATHMANDU: The investment volume of Nepal’s life and non-life insurance companies has nearly doubled over the past five years, rising by Rs 366.53 billion. According to the 59th annual report of the Insurance Board, the sector’s investment has increased from Rs 439.71 billion in fiscal year 2077/78 to Rs 862.5 billion by the end of Chaitra in 2081/82.

The steady growth in the insurance business—both life and non-life—has contributed to the expansion of the sector’s investment capacity. In FY 2077/78, total investment had grown by 25.48%. In the following years, annual growth remained strong: 21.75%, 23.08%, and 8.26%, with a further 13.02% growth recorded in the third quarter of the current fiscal year.

Among life insurers, three companies now have insurance funds exceeding Rs 100 billion. Nepal Life Insurance and LIC Nepal lead the group, while National Life Insurance is also close to reaching the Rs 100 billion mark.

The report also highlights that a significant portion of insurance sector investments remains concentrated in fixed deposits of commercial banks. Insurer financial statements reveal that approximately 80% of total investments are held in such deposits, underlining the sector’s preference for stable, low-risk returns.

Industry experts say this growing pool of insurance sector investment could play a larger role in national capital formation if diversified more effectively into infrastructure and long-term productive assets.