What is the story about?
What's Happening?
Sri Lanka's insurance industry has experienced significant growth, with its gross written premium (GWP) increasing by 54.6% over the past five years. The industry's GWP rose from $0.7 billion in 2020 to $1.1 billion in 2024. This growth continued into 2025, with a 10.6% year-on-year increase in the first quarter. Life insurance has been a major driver of this growth, with a 21.4% increase, while general insurance saw a slight decline. The total industry assets also expanded, with life insurance assets growing by 15.7% and general insurance assets by 9.6%. However, profitability has softened, with life insurance profits down by 22.6% in early 2025.
Why It's Important?
The growth in Sri Lanka's insurance industry is a positive indicator of the sector's resilience and potential for continued expansion. The increase in GWP and assets suggests a strengthening market, which could attract more investment and enhance the industry's contribution to the national economy. However, the decline in profitability highlights challenges that insurers may face, such as managing costs and improving efficiency. The role of brokers in expanding market penetration is also noteworthy, as it indicates a shift towards more intermediary-driven sales, which could influence future industry dynamics.
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