Sri Lanka: Insurance industry deemed too reliant on motor
Source: Asia Insurance Review | Jun 2016
The insurance industry of Sri Lanka is heavily dependent on motor insurance business which constitutes more than 60% of total non-life premiums, said the Chairwoman of the Insurance Board of Sri Lanka, (IBSL), Mrs Indrani Sugathadasa, adding that growth in other sectors is marginal.
According to the latest IBSL annual data, motor insurance premiums totalled LKR34.95 billion (US$238.6 million) in 2014 or 63% of total non-life premiums of LKR55.3 billion. Fire insurance premiums amounted to LKR6.2 billion or 11% of total non-life premiums, and miscellaneous insurance, which includes health, attracted premiums of LKR12.3 billion or 22%.
Speaking at a recent general insurance conference, she said that it was obvious that the industry needs to establish itself with the public, reported the Ceylon Daily News.
“There are many people who do not fully trust the insurance industry and there is a lack of loyalty and an overall lack of education about the industry.”