Insurance businesses show upward results
The total Gross Written Premium (GWP) income for General Insurance
and Long Term Insurance Businesses for the six months up to June 30,
2012 was Rs. 43.78 billion which reflected a growth of 13.45 % compared
with the first six months of 2011.
General Insurance Business and Long Term Insurance Business witnessed
a growth of 20.70 % and 4.28 % respectively in GWP income during the
first half of 2012 when compared to the same period in 2011.
The GWP income of General Insurance Business amounted to Rs. 26.02
billion (first half 2011: Rs. 21.56 billion) while the GWP income of
Long Term Insurance Business amounted to Rs. 17.76 billion (first half
2011: Rs. 17.04 billion) during the first six months of 2012.
Total assets of insurance companies have increased to Rs. 279.10
billion as at June 30, 2012 when compared with Rs. 265.41 billion
recorded as at December 31, 2011. In terms of Section 25 of the Act, 20
% of assets of the Technical Reserve of General Insurance Business and
30 % of the assets of Long Term Insurance Fund of the Life Insurance
Business should be invested in Government Securities.
This is a mandatory requirement that all insurance companies have to
comply with.
The investment in Government Securities represents 50.21 % (first
half 2011: 56.06 %) of the total assets of Long Term Insurance Business
and 29.60 % (first half 2011: 26.50%) of the total assets of General
Insurance Business at the end of second quarter of 2012. In terms of
Section 98 of the Act, the Board inquires into policyholders' grievances
in connection with repudiation of claims by insurance companies. During
the period, IBSL inquired into a total of 195 such complaints.
Fifty insurance brokering companies, registered with the IBSL in
terms of Section 82 of the Act, currently engage in insurance brokering
business, mainly concentrating on General Insurance Business.
The total premium income from both General Insurance Business and
Long Term Insurance Business generated through insurance brokering
companies amounted to Rs. 6.31 billion during the first half of 2012,
compared to Rs. 4.94 billion during the same period in 2011.
Out of the 22 insurers registered with the IBSL, 12 are composite A
companies (dealing in both General and Long Term Insurance Businesses),
seven are registered to carry on General Insurance Business and three
companies engage only in Long Term (Life) Insurance Business.
However, one company registered to carry on General Insurance
Business was prohibited from engaging in insurance business since August
5, 2009.
|