Page 24 - Insurance Times February 2024

The subsidiaries of Tokio Marine and Sri Lanka's insurance premium income rises with re-
Sompo Japan, as well as MS&AD, said
in response that they will make prised policies
companywide efforts to improve their In the first half of 2023, Sri Lanka's insurance sector saw an increase in Gross
operations. Written Premium (GWP) due to reprised policies and rising prices, while in-
The FSA separately said the insurers surance claims also rose, central bank report showed.
were likely to have felt compelled to The insurance market in Sri Lanka is growing, but it is still small compared
maintain their profitability as their fire to other countries in the region. Recent estimates put Sri Lanka's insurance
insurance businesses were suffering premium income at LKR 80 billion (USD 400 million).
from losses due to an increase in the
At 70% of premium income, lifeinsurance remains the largest insurance seg-
frequency and severity of natural disas-
ment. General insurance, which includes motor and health insurance, is ex-
ters around 2018.
pected to grow faster in the coming years.
On top of a lack of compliance aware-
While liquidity ratios improved for both segments, general insurance lagged
ness, the firms may have had a dimin-
behind long-term insurance in profitability.
ished sense of market competition
given their shareholding relationships The general insurance segment's capital adequacy ratio decreased while
with corporate clients, the regulator the long-term insurance sector's improved. To maintain sector stability,
found. banks, LFCs, and insurance companies must closely monitor their sovereign
exposure and take prudent measures to reduce it.
Bangladesh has 35 life and Sri Lanka's payment and settlement system maintained resilience in 2023
despite the changing financial landscape and digital payment systems.
46 non-life insurers.
The insurance industry in Sri Lanka has grown steadily in recent years, with
Recent data from Switzerland-based
Swiss Re Institute shows that insurance new players offering innovative products to meet consumer needs.
premiums to GDP are only 0.4% while Life insurance dominates the industry, but motor and health insurance are
they are over 4% in India. growing in popularity. Consumer ignorance of insurance benefits and prod-
Jalalul Azim, chief executive officer of ucts is a major issue for the Sri Lankan insurance industry.
Pragati Life Insurance, feels that the The country's insurance penetration rate is low, with many people still us-
model should have been launched ear- ing traditional savings and investment methods. Despite these challenges,
lier. "Still, there is a huge opportunity to rising incomes, urbanisation, and the middle class's growing importance will
enhance the image of insurance compa- drive industry growth.
nies." He also said both insurers and
banks will benefit from bancassurance if
they do business following the instruc- Bangladesh is committed to investing in Mohammad Zainul Bari, chairman of
tions of regulators instead of engaging in the development of bancassurance the Idra, said the regulator will initiate
unhealthy competition. while continuing to support its existing various preparatory activities, including
agent base." workshops, for the officials of banks and
Istiaque Mahmud, head of the insurance companies so that they can
bancassurance department of Guard- Main Uddin, a professor at the bank- offer the bancassurance facility as soon
ian Life, said the bancassurance distri- ing and insurance department in the as possible.
bution channel will open up business University of Dhaka, says agents of
opportunities for the hugely untapped most insurance companies gave incor- Join
insurance market, which is estimated rect or exaggerated information to Online Certificate
to be worth Tk 5,000 crore. policyholders while selling policies.
Course on
Ala Ahmad, CEO of MetLife Bangladesh, Sheikh Kabir Hossain, president of the
said bancassurance has the potential to Bangladesh Insurance Association, a Digital Trends in Marine
give a boost to the insurance sector. platform for insurance companies, Insurance
And as a new channel to sell insurance said: "This is good news for the entire For details please visit
products, it will bring more people un- industry, especially for the life insur-
der the coverage of insurance. "MetLife ance sector." www.smartonlinecourse.co.in

22 February 2024 The Insurance Times