New vendors for Sri Lanka insurance industry
This is part of the industry’s transformation with new regulations and high technology, accelerating shifts in consumer demand and mounting competition among established insurers in the island.
Telecom operators, supermarkets, online retailers, digital platforms of web aggregators and others will be given an opportunity to become insurance ‘distributors of relevant companies’ under new regulations to provide easy access for customers to insurance. This will be a new role of an insurance ‘distributor’ in addition to the traditional brokering agents, a Finance Ministry official said.
This is part of the industry’s transformation with new regulations and high technology, accelerating shifts in consumer demand and mounting competition among established insurers in the island.
The government will take legal and regulatory measures for the sustenance of 28 companies currently operating in the field of insurance and to safeguard policy holders while providing more benefits for them, the insurance sector reform plan devised by the Finance Ministry affirmed.
The Sri Lanka market size (gross written premium) of insurance is projected to reach Rs. 504.64 billion in 2024. Finance ministry projections using mathematical models and provisional data showed.
Non-Life insurance dominates the market with a projected market volume of Rs. 344.52 in 2024.
In a major initiative, the Regulation of Insurance Industry Act No.43 of 2000 will be reviewed and necessary amendments made to bring it in line with the requirements of the global insurance sector, a ministry official said
The International Monetary Fund has also directed to consider the needs of the domestic market and to enhance clarity within the legal framework, he disclosed. Amendments to related legislation such as Motor Traffic Act are to be introduced to streamline processes and improve the overall efficiency of this sector.
The Insurance Regulatory Commission’s (IRCSL) role will be strengthened in safeguarding the interests of policy holders.
IRCSL will be empowered to introduce and enforce measures which promote greater transparency and disclosure in order to increase customer confidence and ability to make informed decisions when purchasing insurance.