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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Good times ahead for insurance industry

Good times ahead for insurance industry

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1Good times ahead for insurance industry Empty Good times ahead for insurance industry Wed Aug 21, 2013 1:23 am

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
The insurance industry is expected to grow at a healthy pace as a result of macro economic conditions prevailing in the country. The landscape of the insurance industry will be clearer after 2016,when the composite insurance companies are segregated.

"All registered insurance companies have increased their capital to Rs 500 million and all have adopted the Risk Based Capital framework.

"Then we will be in a better position to determine the actual size of the market and forecast an optimal numbers of players", Insurance Board of Sri Lanka Chairperson Indrani Sugathadasa said. "There is a dire need to increase awareness of insurance products and the benefits of insurance.

"In addition, insurance companies will need to win the confidence of the public that the insurance industry is a fair,safe and stable industry that supports economic growth, and that could be achieved by offering a product portfolio that meets the needs of the public with reasonable premiums and fair treatment in claims settlement.

The geographical spread of insurance business to former conflict areas and the presence of companies and intermediaries in these areas will assist in the increase in awareness and promotion of insurance not only as a safety net but also as a financial tool.
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