Insurance industry poised for growth

By Charumini de Silva

Sri Lanka’s insurance industry is set to post over 20% growth this year owing to the positive prospects of the economy.

Insurance Association of Sri Lanka (IASL) President Dirk Pereira said there were no particular factors pulling the industry backwards and called on firms to focus on a needs-based selling strategy to increase insurance penetration in the country.

He made these remarks while speaking at the 7th National Forum for Life Insurance Advisors (NAFLIA) organised by the Marketing and Sales Forum of the IASL last Friday. 

Noting that the digitisation of the economy would change the landscape of the entire financial industry, he said the proposed direct debit system by Lanka Clear within the next six months would further strengthen the insurance industry in particular to increase penetration. 

According to statistics, only 30% of Sri Lankans are protected through an insurance policy and only 12% have life insurance coverage while 33% of the total working population is insured.

Pereira was optimistic that Sri Lanka would enhance its penetration levels while maintaining growth levels through awareness programs, advancements in products, technology and economic activities.

“When an economy reaches the level of $ 5,000-$ 6,000 the penetration levels pick up. Reaching these targets, the industry will also gather its pace,” he added. 

Pix by Lasantha Kumara 

IASL launches Life Insurance Month

Following the success of last year’s Life Insurance Month awareness campaign, the IASL, in collaboration with all insurance companies, has decided to once again roll out the initiative to woo new policyholders.

IASL Marketing and Sales Forum Chairman Samitha Hemachandra said that this year too the advisors were looking forward to visiting one million customers with a goal of attracting 70,000 new policyholders by the end of next month.

Commending life insurance advisors from all companies for coming together to achieve a common cause of improving awareness in the market on the value of life insurance, he asserted that they delivered commendable results last year. 

“By the end of the campaign we recorded 33% growth, which is a noteworthy development for the industry,” Hemachandra added.

He said the campaign would also address issues which would have a long-term positive impact not only on the industry but on the economy as a whole.