Life insurance policy surrenders declined by 17.65 percent during the first five months of the current fiscal year, according to the Nepal Insurance Authority. A total of 37,147 policies worth Rs 5.69 billion were surrendered, down from Rs 6.10 billion during the same period last year. Regulators credit the improvement to stricter agent licensing, improved training, and expanded insurance awareness initiatives. However, non-renewal of policies continues to pose a challenge, with unpaid premiums nearing Rs 37 billion and a marginal increase in lapsed policies. Insurers have introduced renewal discount schemes, though limited awareness and weak communication by agents have reduced their effectiveness.
