Market analysis of life insurance companies in nepal

Abstract

This study investigates the market dynamics of life insurance companies in Nepal, focusing on how key factors influence consumer behavior and investment decisions. The research aims to provide insights into how financial security, risk sharing, low transaction expenses, systematic investment, returns, and portfolio management collectively shape customer choices and contribute to broader trends in Nepal‘s life insurance market. Primary data were collected from 408 respondents through structured questionnaires administered online and in person. The data were processed using Microsoft Excel and SPSS, employing descriptive statistics, correlation analysis, and multivariate regression models to evaluate relationships between variables. Descriptive results revealed that respondents generally agreed with all the proposed factors, with Portfolio Management and Returns receiving the highest average scores. Inferential analysis confirmed strong positive correlations between all independent variables and the dependent variable Life Insurance Investment Decision. Regression results showed that Portfolio Management (β = 0.381), Systematic Investment (β = 0.194), Returns (β = 0.177), and Risk Sharing (β = 0.131) significantly influenced investment decisions (p < 0.05), while Financial Security and Low Transaction Expenses did not have a statistically significant impact. The model demonstrated a high explanatory power with an adjusted R-squared value of 82.3%, and no issues of multicollinearity were observed. These findings highlight Portfolio Management as the most influential factor driving life insurance investment decisions in Nepal. The results offer practical implications for insurance companies to tailor products, enhance consumer engagement, and promote structured, return-oriented investment plans. This study contributes to a deeper understanding of customer behavior in Nepal‘s evolving insurance sector. Keywords: Life insurance, financial security, risk sharing, low transaction expenses and portfolio management.