Forty-five companies contribute 25 percent to industry:

Sri Lanka has potential to grow in insurance brokering

Harshini PERERA

There is a huge demand for local Insurance brokers internationally.

Sri Lanka Insurance Brokers’ Association, President Joachim Caspersz told Daily News, Business that there is a big demand for Insurance Broker Companies in the international market. The share of business held by the Insurance Brokers in Canada is 80 percent whereas in UK the total insurance business is operated through Broker Companies.

He said that Sri Lanka has the potential to grow in insurance brokering in the industry further.

Forty-five Insurance Brokering Companies operate in Sri Lanka and contribute 25 percent to the insurance industry.

Many insurance brokers find it difficult to sustain in the industry since there is a regulatory requirement to be fulfilled as there is a lack of new business. For the past two years 10 new companies including medium and small scale have joined the Insurance Broker industry. Several large-scale companies joined the industry.

Life insurance and general insurance are the two segments of the insurance industry and insurance brokers contribute the service to the latter. The industry has not been able to improve the sales policies among individuals effectively and the premium growth rate declined. There is intense competition since there is a lack of new business, he said.

Sri Lanka Insurance Brokers Association, Vice President Sanjiv Keerthiratne said that a few companies had withdrawn from the industry during the past two years and a growth can be expected with the post war situation.