Sri Lanka’s insurance industry grows 13.2%

April 14 2015 by InsuranceAsia News Staff

Sri Lanka’s insurance industry has grown 13.2% in terms of written premium during the review period from 2009 to 2013, Research and Markets said in a report.

The non-life segment posted a Compound Annual Growth Rate (CAGR) of 11.2% in four years from 2009 to 2013, boosted by the motor insurance industry, the report said.

While the industry has grown by double digits during the review period, the report said the insurance penetration in Sri Lanka as of 2013 remains at 1.2%, lower than the Asian average of 6.0%.

There are already 22 licensed insurance companies operating in the country as of 30 June 2014. Analysts expect more insurers to invest in Sri Lanka as the UN report ‘World Economic Situation and Prospects 2013’ showed that the country attracted the attention of global investors, and recorded the highest GDP growth in South Asia.

The country’s existing insurance law requires all insurers in Sri Lanka to list on the Colombo Stock Exchange within five years of commencement of operations.

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