Insurance company premium income tops Rs. 37.2 b in 2005

Anjana Samarasinghe

INSURANCE PREMIUM: Insurance companies in Sri Lanka have gained nearly Rs. 37.2 billion as the annual net premium income in both life and general last year. This was Rs. 29.5 billion in 2004. Director General of the Insurance Board of Sri Lanka (IBSL) Lasinee Seresinhe said there was a significant growth in the insurance industry.

General insurance has grown by 31.5% last year due to the tsunami disaster. Many consumers are concerned on trying insurance schemes after the tsunami, she added. 'Many Insurance companies have their own branches in the North East areas and most of them have successful business there. Insurance companies should concentrate on rural areas rather than urban selling', she said. IBSL receives nearly 10 complaints a month from consumers on life insurance claims and insurance brokers.

'However we settle the problems that are submitted to us', she said. Consultant of IBSL, M. Kanapathipillai said though they do not have records on claims that insurance companies have settled, nearly 50% of the claims settled are for motor insurance.

IBSL is making arrangements to collect the records on claims that each company made each year from this year, he added.

There is a high penetration on motor insurance since it is compulsory for driving a vehicle.

There are only 6% who have gone for life insurance policies. In Singapore it is recorded as 60% to 70%", Kanapathipillai said.

There is no proper awareness on insurance among public. The IBSL expects to conduct programmes to educate public on insurance and recruit officials for their market development.

There are 15 insurance companies and 55 insurance brokers registered under the IBSL.

This year, a new company for insurance and two insurance brokers has submitted their applications for IBSL.