Urgent need to increase Sri Lanka’s insurance penetration from just 13% of population

Insurance penetration in Sri Lanka is just 13 per cent of the population with 87 per cent out of the radar, a challenging task for the insurance industry in its effort to increase coverage.

Speaking at the 8th National Forum for Life Insurance Advisers (NAFLIA) held on Thursday at the BMICH themed “Towards a Day all Sri Lankans are insured. Are we ready?” Deepthi Lokuarachchi, Managing Director/CEO, HNB Assurance PLC and Chairman, Sri Lanka Insurance Association said that the insurance penetration level contributes only 2 per cent to GDP and there is a need to examine the reason for this and how to achieve full penetration.   

Fourteen companies are in the insurance business and the annual average of insurance premium is Rs, 60 billion, he said. While Sri Lanka is a developing country with its annual per capita income at US$3,800 (2016), there is a need to review whether Sri Lankans could afford an average monthly premium of around Rs. 5,800.

He said the industry should study whether they could work out a lower premium rate to boost penetration levels which are low in Sri Lanka compared to other countries.  

Ms. Indrani Sugathadasa, Chairperson, Insurance Board of Sri Lanka was the Chief Guest while Prof Ajantha Dharmasiri, President, Institute of Personnel Management (IPM) delivered the keynote on ‘Excel in Excellence – Behavioural Perspective’. (Quintus)