Determinants of

Profitability of Nonlife
Insurance Companies in
Nepal
BY Unnati kc
Roll no. 41/2018
Exam roll no.3983/2018
 INTRODUCTION
A study on the profitability of the insurance
industry is crucial since the insurance industry is
currently facing many challenges, including
increased competition, consolidation, solvency risk
,uncertainty and a changing the forces regulatory
environment and deterring the factors intervention.
The question of efficiency of the firm in the
industry will respond to these challenges and
which firms are likely to survive( Berger. Al 1997)
 Statement of the problem

I. What are the firm specific factors that

determines the profitability of nonlife
insurance companies in Nepal ?
II. What is the microeconomic factor that
determines the profitability of nonlife insurance
companies in Nepal ?
III. How does these factors affect the
profitability of nonlife insurance
companies in Nepal ?
 Objective of the study

I. To analyze the firm specific factors such as

claim incurred, premium growth, and insurance
policies that determines profitability of nonlife
insurance companies in Nepal.

II. To explain the microeconomic factor such as

insurance literacy of the consumer that
determines the overall profitability of the nonlife
insurance companies in Nepal.
Significance of the study

i. This research will be beneficial to the policy

maker, manager, investor, and other
stakeholders.

ii. Its helps to consider factors of determinant

which affect the overall performance of
nonlife insurance industries.
 Limitation of the study

I. This study only take the sample from the nonlife

insurance companies of Nepal.

II. This study will be consider some specific factors of

internal and external.

III. Time frame and resources are limited so study

may not reveled the exact result.
 Research methodology
I. Research design : Descriptive.
II. Nature and sources of data: Quantitative,
primary and secondary sources
III. Population and sample: Total number of
nonlife insurance companies(20) are the
population and 5 of them will be the
sample.
IV. Sampling Method: Nonprobability sampling
and conventional sampling types.
v. Data collection procedure: Primary data will
be collected from survey questionnaires of
consumers and secondary data will be
collected from annual report, financial
statement, journal , and websites.

vi. Data analysis tools: financial and statics

tools

vii. Model and variables: Mean, standard

deviation, variance, regression
 𝑇h𝑎𝑛𝑘𝑦𝑜𝑢