More foreign insurance firms are considering investing in Sri Lanka, according to Insurance Board of Sri Lanka (IBSL) officials. “There’re a few inquires by foreign insurance companies and we’re currently finalising licensing for one firm," an IBSL official told the Business Times. In March this year, Arab Orient Insurance owned by the Al-Futtaim Group launched Orient Insurance in Sri Lanka. Former Eagle Insurance was taken over by UK-based Aviva in an alliance with local NDB Bank.
The official said that firms are interested in getting into the general insurance sector, with insurance classes of motor, marine, property, liability, medical and all other classes coming within the general insurance classification.
Meanwhile the IBSL’s annual report for 2011 said that the overall Gross Written Premium (GWP) income for Long Term Insurance and General Insurance businesses was Rs. 78,512 million compared with the previous year's amount of Rs. 66,253 million, up 18.5% growth.
"The General Insurance Business has demonstrated growth in overall GWP income during 2011 when compared to the year 2010," it said. Commenting on this, the official said that the Long Term Insurance Business has shown a growth in overall GWP income during 2011 when compared to 2010, but it has room for improvement.
The overall Gross Written Premium Income of General Insurance Business amounted to Rs. 43.3 billion reflecting a growth rate of 23.45% (2010 – Rs. 35.1 billion) while the overall Gross Written Premium Income of Long Term Insurance Business amounted to Rs. 35.2 billion during the last year reflecting a growth rate of 12.93% (2010 – Rs. 31.1 billion). Total assets of the insurance companies have increased to Rs. 265.4 billion at the end of 2011, against Rs. 222 billion earlier, the report said. It said some 46 insurance broking companies were registered with the IBSL mainly concentrating on the General Insurance Business.