Resuscitating Life Insurance in Nepal: An Analysis of Sectoral Constraints and Reform Pathways

Khilendra Paudel

doi:10.36948/ijfmr.2025.v07i04.54472

Resuscitating Life Insurance in Nepal: An Analysis of Sectoral Constraints and Reform Pathways

Author(s)	Khilendra Paudel
Country	Nepal
Abstract	Life insurance plays a vital role in strengthening household financial security and significantly supports the stability and growth of the national economy. However, despite regulatory reforms and recent efforts to implement digital solutions, Nepal’s life insurance penetration remains among the lowest in South Asia, highlighting deep-rooted structural and policy challenges. This study aims to examine sector-specific constraints that hinder the growth of life insurance in Nepal and to propose reform pathways to expand its reach and effectiveness. The objectives are threefold: to identify structural and regulatory barriers, explore gaps in product innovation and consumer literacy, and suggest practical reforms to improve penetration. Methodologically, the study employs a qualitative desk research approach, relying on secondary data from Beema Samiti reports, annual disclosures from insurance companies, and relevant academic literature. Thematic analysis categorizes challenges into three areas: policy and regulatory environment, product innovation, and consumer behavior. The findings reveal ongoing issues such as limited regulatory enforcement capacity, low levels of insurance literacy, insufficient product diversification, and cultural attitudes that discourage long-term financial planning. Additionally, the industry faces inefficiencies in distribution channels and a lack of adoption of customer-focused innovations. The study concludes that addressing these complex challenges requires coordinated reforms including regulatory improvements, targeted awareness campaigns, and product restructuring that considers Nepal’s socio-economic context. The insights from this research are valuable for policymakers, regulators, and insurance providers, offering evidence-based strategies to enhance financial inclusion and support sustainable growth in Nepal’s life insurance sector.
Keywords	Life insurance, Nepal, financial inclusion, Policy reform, Insurance penetration, Insurance literacy, Product innovation
Field	Business Administration
Published In	Volume 7, Issue 4, July-August 2025
Published On	2025-08-26
DOI	https://doi.org/10.36948/ijfmr.2025.v07i04.54472
Short DOI	https://doi.org/g9z27g

View / Download PDF File

E-ISSN 2582-2160

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 8 Isu 1 Cover Page Vol 7 Isu 6 Cover Page Vol 7 Isu 5

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Resuscitating Life Insurance in Nepal: An Analysis of Sectoral Constraints and Reform Pathways

Share this