Insurance regulator sees steady industry growth despite challenges

THE Insurance Regulatory Commission of Sri Lanka (IRCSL) says the insurance industry has demonstrated resilience from 2020 through early 2025, successfully navigating the economic challenges caused by the COVID-19 pandemic and the severe economic crisis of 2022.

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Despite these hurdles, the sector remained stable, reaffirming its commitment to protecting policyholders and ensuring business continuity, the IRCSL said in a performance review of the insurance sector from 2020 to the first quarter of 2025. The review is reproduced as follows:

In 2024, both life and general insurance sectors recorded improvements supported by proactive regulatory measures from the IRCSL. Over the past five years, the industry has made significant progress toward sustainability, with the positive momentum continuing into the first quarter of 2025, marked by a steady increase in Gross Written Premiums (GWP).

These developments highlight the insurance sector’s vital contribution to Sri Lanka’s economic recovery and emphasise the ongoing need for innovation and regulatory support to expand insurance coverage across all communities.

As of 31 March 2025, 15 companies were operating in the Long-Term (Life) Insurance sector, while 14 companies were engaged in the General Insurance sector.

Chart 1 highlights the performance of the insurance industry from 2020 to 2024. Total GWP increased significantly, reaching Rs. 322,037 million in 2024 compared to Rs. 208,265 million in 2020, representing an impressive growth of 54.6%.

The Long-Term (Life) Insurance sector saw a notable rise in GWP, growing from Rs. 103,000 million in 2020 to Rs. 183,875 million in 2024. This steady increase reflects the sector’s growing appeal and the rising demand for long-term financial security among policyholders.

Similarly, the General Insurance sector experienced growth during this period, with GWP increasing from Rs. 105,265 million in 2020 to Rs. 138,162 million in 2024. This upward trend signifies enhanced public awareness and a wider acceptance of insurance products throughout Sri Lanka.