Thursday, September 8, 2016

INSURANCE AND ITS BUSINESS IN Nepal



People live in society. Society is full of risks and uncertainty. Insurance is a device providing financial compensation to those who suffer from misfortune. In orther words, insurance is the best means for security to human life and property from various risks. It is a kind of investment, from which one gets return only when certain loss occurred from predetermined incidents This study aims mainly to analyze the performance of Insurance business in Nepal The data used in this study is mainly quantitative and analysis has bee carried out by using simple percentage and correlation coefficient. The study reveals that there are altogether 27 insurance companies out of which 8 companies provide life insurance while 17 companies provide non-life insurance and 2 insurance companies offer both life and non-life services. They have branch offices in valley and outside of valley. The growth of insurance policies for both life and non-life insurance companies has been increasing and significant during the study period. Similarly, the progressive trend of premium collection reached to 48 % for non-life and 37.06%  for life insurance in FY 2066/67 and contributed 1.70% in GDP of the economy. Moreover, the investment of insurance companies has been positive but fluctuation over the period under study. However, the correlation coefficient between total premium collection and total investment is positive with r = 0.97 and significant as its PE is only 0.0163. These facts reveal that the performance of insurance business in Nepal is satisfactory.



Search

Custom Search

E-mailPaysU

Unique visiter

free hit counter
Download a free hit counter here.
This site contains about definition of insurance, auto insurance quote, life, health, home,