Market Share and Market Concentration of Nepalese Life Insurance Industries

Abstract

The paper aims to examine the pattern of premium income, explore market share of the different types of premium income, trend of the income and growth pattern and correlation among the first, renewal and single premium for the five year period based on the secondary data. Trend, average, standard deviation and concentration ratio has been used to interpret the variables. The study concludes that Nepalese life insurance market has satisfactory growth, large variation on market structure among the insurance carriers, renewal premium is major sources of income, the characteristics of the market is oligopoly. The correlation matrix reveals that first premium is more correlated with rest of two kind of premium. Performance of some companies has been found the below the satisfactory level while very few have shown enthusiastic performance. The paper tries to draw attention of the concerned authorities to take the proper initiation on the right time to enhance the capacity of the poor performing insurer in order to protect the rights of the policyholders by different means of the evacuation.