Life insurance to grow in 2011

Indunil Hewage

The Sri Lankan life insurance sector is likely to record 15 percent to 20 per cent growth in 2011.

According to the annual results of the Insurance Board of Sri Lanka (IBSL), life insurance industry managed to report 0.7 per cent growth in 2009.

With the opening of the Northern and the Eastern parts of the country the insurance industry sees potential market opportunities in these areas.

"Life and general insurance markets are booming in these areas. There is also a huge market potential in the health insurance segment with the increase in aging population in the country," Ceylinco Life Senior Assistant General Manager Samitha Hemachandra said.

He said that 10 percent of the total population in the country has some kind of insurance policy and 26 percent of labourers out of the total labour force in the country has managed to obtain insurance policies.

"People are now becoming more aware of the importance of having a life insurance policy. We have taken measures to increase awareness on the insurance industry among the public in the country," Hemachandra said.

The life insurance sector has seen a marked growth than the general insurance sector during the last couple of years according to the figures released by the Insurance Board of Sri Lanka.

The insurance industry's contribution to the country's Gross Domestic Product (GDP) is likely to increase in years to come with the expansion of the industry.

According to the IBSL annual report, the insurance industry contribution to the GDP was 1.19 per cent in 2009.

"The competition in the life insurance sector is very high, however, Some insurance companies are restricted to urban areas. But most of the companies have recognized the importance of expanding their services to the rural areas," Hemachandra said.

According to IBSL figures, the general insurance industry in the country recorded 3.1 percent growth in 2009.

With the expansion of the economic activities in the country the general insurance sector is likely to record over 10 percent growth in 2011, Ceylinco Insurance General, Marketing Assistant General Manager Senaka Rajapakse said.