DETERMINANTS OF INSURANCE PREMIUM OF LIFE INSURANCE COMPANIES IN NEPAL

Abstract

This study is examined determinants of insurance premium of life insurance companies in Nepal. The main objectives of this study are to examine the current status of internal factors that affect the collection of insurance premium of Nepalese life insurance companies, to analyze the relationship between size of the company, liquidity, volume of capital, fixed assets, and growth rate with collection of insurance premium in Nepalese life insurance companies, and to analyze the impact of size of the company, liquidity, volume of capital, fixed assets and growth rate with collection of insurance premium in Nepalese life insurance companies. size of the company, liquidity, volume of capital, fixed assets and growth rate are the independent variables and Volume of premium is the dependent variable in this study. Mean, standard deviation, correlation and multiple regression analysis are taken to present data. The major finding of this study is the negative correlation coefficient with Size suggests an inverse relationship between the size of the companies and the volume of premium, this implies that larger and more liquid companies tend to have higher volumes of capital, reflecting a potential relationship between company size, liquidity, and capital resources. In term of regression coefficient size, volume of capital and fixed assets are the significant relationship with the volume of premium and impact on volume of the life insurance companies in Nepal. Liquidity and growth rate are the insignificant relationship with volume of the premium.