insurence
Second Individual Assignment
Risk, Risk management and Insurance
How did you find the current insurance marketing system in Nepal? Is it a healthy competition going on? What are the areas where you see to explore Life and Non-life insurance market? Now a days is of marketing, what would be your suggestion to the current market insurance CEO for the development of insurance market?
First of all, Insurance market if to be defined in context of Nepal then it has a very high potential for growth. In Nepal, there are only 25 insurance companies including 16 life and 9 non-life. These insurance companies have already sold out more than 1.5 million life-policies and 400,000 non-life policies. That is accounted as only 5 per cent of the total population in the country buying insurance policies even though 30 percent know about it. Still, a large number of people are not covered by scheme of insurance. But still insurance industry is a fastest growing industry of Nepal. The annual growth of insurance market in Nepal is 10-15 percent whereas it is 25 to 30 percent in countries like Srilanka and India. But after the liberalization of 2046, the government has taken a number of initiations in the area of financial sector reforms including insurance. It is because insurance is also an important part of the overall financial system.
A lot of insurance companies are being added due to which there has been an increased competition among the individual policy holders and market players, agents and surveyors due to which the insurance market is imperfect. Besides that there are numerous schemes and products provided by the insurance companies at various rates ranging from 7 to 9%. More people are attracted towards insurance because of the coverage it gives for life and health benefits. What customers mainly seek is the variety in products that best suits their diverse needs, so this offers insurance companies to extend their area of operation. There are a lot
Risk, Risk management and Insurance
How did you find the current insurance marketing system in Nepal? Is it a healthy competition going on? What are the areas where you see to explore Life and Non-life insurance market? Now a days is of marketing, what would be your suggestion to the current market insurance CEO for the development of insurance market?
First of all, Insurance market if to be defined in context of Nepal then it has a very high potential for growth. In Nepal, there are only 25 insurance companies including 16 life and 9 non-life. These insurance companies have already sold out more than 1.5 million life-policies and 400,000 non-life policies. That is accounted as only 5 per cent of the total population in the country buying insurance policies even though 30 percent know about it. Still, a large number of people are not covered by scheme of insurance. But still insurance industry is a fastest growing industry of Nepal. The annual growth of insurance market in Nepal is 10-15 percent whereas it is 25 to 30 percent in countries like Srilanka and India. But after the liberalization of 2046, the government has taken a number of initiations in the area of financial sector reforms including insurance. It is because insurance is also an important part of the overall financial system.
A lot of insurance companies are being added due to which there has been an increased competition among the individual policy holders and market players, agents and surveyors due to which the insurance market is imperfect. Besides that there are numerous schemes and products provided by the insurance companies at various rates ranging from 7 to 9%. More people are attracted towards insurance because of the coverage it gives for life and health benefits. What customers mainly seek is the variety in products that best suits their diverse needs, so this offers insurance companies to extend their area of operation. There are a lot