Insurance sector grows at 8.64 per cent in 2019
The Gross Written Premium (GWP) of Sri Lanka’s insurance industry has increased 8.64 per cent to Rs 196,513 million during 2019 from Rs 180,880 million recorded in 2018.
According to the Insurance Regulatory Commission of Sri Lanka (IRCSL), the long-term insurance sector generated a GWP of Rs 88,781 million in 2019, up by 10.57 per cent against Rs 80,294 million recorded a year earlier.
General Insurance Business saw its GWP grow at 7.1 per cent to Rs 107,732 million in 2019 from Rs 100,586 million a year ago.
The reinsurance premium income generated by the National Insurance Trust Fund (NITF) from the compulsory reinsurance cession of general insurance business amounted to Rs 4,174 million during 2019, up 2.91 per cent from Rs. 4,056 million recorded in 2018.
Profitability of long-term insurance business declined 25 per cent in 2019 to Rs 19,540 million from Rs 26,027 million in 2018, while the profitability of general insurance declined 5.17 per cent to Rs 11,130 million from 11,727 million a year earlier.
Sri Lanka saw its insurance penetration increase to 1.31 per cent in 2019 from 1.26 per cent recorded in 2018. However, according to IRCSL insurance penetration in Sri Lanka is low compared to other Asian countries.
Insurance penetration of the long-term insurance business in 2019 stood at 0.59 per cent, up from 0.56 per cent recorded in 2018, while the penetration of general insurance business was 0.72 per cent, up from 0.70 per cent recorded a year earlier.
Total assets of insurance companies increased to Rs 696,283 million in 2019, up 10.44 per cent compared to Rs 630,447 million recorded a year earlier.
The assets of Long-Term Insurance Business amounted to Rs 485,723 million, up 12.76 per cent compared to Rs 430,759 million in 2018, while the assets of General Insurance Business increased 4.01 per cent to Rs 203,870 million from Rs 196,005 million.
Total claims incurred by Long-Term Insurance Business in 2019 amounted to Rs 36,079 million, up 4.83 per cent compared to Rs 34,416 million in 2018.
The insurance sector in Sri Lanka comprises twenty-seven insurance companies, sixty-seven insurance brokering companies and sixteen loss adjusters at the end of 2019. Out of the twenty-seven insurers, thirteen operated as life insurers carrying on long-term insurance business, twelve engaged in general insurance business and two operated as composite insurers.