The Sri Lankan Insurance Industry among other fields experiences significant challenges to business as a result of the onset of the Co-vid 19 pandemic. But despite these challenges the industry has recorded a growth of 16% during this time period.
According to the ICRA the sharp decline in systemic interest rates was the key challenge that needed to be addressed in 2020. As a result companies had to come up with creative ways that would help increase their appeal towards potential customers while keeping costs to a minimum and profitability high. As part of the new approach 2020 a keen observation shows us the emergence of alternate distribution channels such as social media and online platforms that were used to level up digital capabilities to increase premium collections.
Insurance companies had to adapt to ever changing situations with a relatively quickly, an example of this adaptability can be seen where Sri Lanka Insurance became one of the first companies to present a free Co-vid 19 cover to its policyholders.
2020 saw the Total Gross Written Premium (GWP) at LKR 102.9 billion a remarkable increase from 2019’s total of LKR 88.77 billion according to Union Assurance PLC.
New business premiums remained low as the year on year value was only 4% largely due to the pandemic. The growth in the industry was largely due to Group Life & Single premiums showing year on year growth rates of 92% & 51% respectively.
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