“The segregation of the businesses for the composite companies will mean that the companies which will have both life and general insurance businesses separated before 2014 and be listed 2015, Director General Insurance Board of Sri Lanka (IBSL) Chandri Gunawardhana told the Daily News Business .
He said the insurance industry in Sri Lanka per has a provisional growth of 12 to 13 percent which needs to be increased by increasing the awareness level among the public with the growth of the sector in the country. He said there is a total of 21 registered insurance companies of which seven are listed. The seven listed insurance companies are, Ceylinco Insurance, Aviva NDB, Union Assurance, HNB Assurance, Amana Takaful and Janashakthi.
“Out of all insurance companies we have 12 composite insurance companies involved in both in life and general needs to be segregated before the end of 2014 because both businesses are different i.e.general insurance concentrates one year term period while the life insurance concentrates long term,” he said.
Gunawardhana said that insurance companies carry on other business with the permission of the IBSL without affecting the co-business or insurance business.The improved prospects in the non-life segment, following a sharp increase in new vehicle registrations and higher trade activity,supported by better domestic growth prospects.
Revised regulations by the IBSL require insurance companies to separate their life and general businesses by 2015, and increase the minimum capital requirements (MCR) for each business line.
Fitch Ratings Lanka in a new report has said that its outlook for Sri Lanka’s insurance sector is Stable. Fitch considers the credit fundamentals of agency-rated issuers to be underpinned by their healthy capitalisation and good profitability, supported by improved macroeconomic factors.