Shaping the future of Sri Lanka's insurance industry

Sri Lanka's insurance industry today stands at a decisive and promising crossroads. We are a country with a commendably high general literacy rate, a strong foundation on which to build. While our financial literacy, particularly in the area of insurance, has room to grow, this also presents us with an exciting opportunity. By addressing this gap, we can identify new avenues for industry growth and strengthen national resilience. As the Insurance Association of Sri Lanka (IASL), we see this moment as an opportunity to drive impactful change. Our vision, as a collective, is to expand penetration, embrace technology and build lasting trust through greater financial awareness.

- BY LASITHA WIMALARATNE

The future of Sri Lanka's insurance industry

At present, Sri Lanka's insurance penetration is just over one per cent of GDP, a figure that compares poorly even with many of our regional peers. India and Indonesia, for example, have already surpassed us despite their larger and more complex markets. Over the next three years, we aim to double this penetration in Sri Lanka.

To achieve this, we are working on developing new products and channels that can reach segments of the population which have remained underserved. From micro-insurance and telco-driven products that appeal to lower and middle-income households, to tailor-made solutions for high-net-worth individuals, our approach must be inclusive and adaptive. Ultimately, our goal is to increase GDP contribution while ensuring that every Sri Lankan has access to the protection and peace of mind that insurance provides.

Our vision also extends beyond numbers. Inspired by India's commitment to insuring its population, we aspire to "insure the nation." I believe that more than half of Sri Lanka's working population is already touched by insurance in some form, whether through micro products, corporate schemes or motor coverage. But vast gaps remain, especially in areas such as household property insurance, where coverage is low unless tied to mortgages. These are the areas where the industry must redouble its efforts.

Innovation, technology and digitalisation

Technology will be at the heart of this transformation. The global insurance industry is racing towards digitisation, data analytics, and automation and Sri Lanka must keep pace. Digital platforms enable faster processes, more accurate risk assessments and a seamless customer experience.