ri Lanka’s insurance industry sustained its growth during the year 2013 with the overall gross written premium (GWP) growing 8.39 percent year-on-year (YoY) and the total assets increasing 12.9 percent YoY, the Insurance Board of Sri Lanka (IBSL) said.
The overall GWP income for long-term insurance (Life) and General insurance businesses in 2013 was Rs.94,483 million compared to 2012, amounting to Rs.87,171 million, which reflected a growth of 8.39 percent.
The GWP income of long-term insurance business amounted to Rs.41,306 million (2012: Rs.37,477 million) while the GWP income of General insurance business amounted to Rs.53,177 million during 2013 (2012: Rs.49,694 million).
Thus, long-term insurance business and General insurance business witnessed a growth of 10.22 percent and 7.01 percent, respectively in GWP income during 2013 when compared to 2012.
The total assets of the insurance companies have increased to Rs.356,566 million as at December 31, 2013 when compared to Rs.315,817 million recorded as at end-2012, reflecting a growth of 12.9 percent.
The assets of long-term insurance business amounted to Rs.217,004 million (2012: Rs.190,642 million) while the assets of General insurance business amounted to Rs.146,778 million (2012: Rs.131,201 million), indicating a growth rate of 13.83 percent and 11.87 percent, respectively at end-2013.
At the end of 2013, the investment of the total assets of long-term insurance business in government securities amounted to Rs.94,024 million, representing 43.33 percent (2012: Rs.98,147 million; 51.48 percent), while such investment of the total assets of General insurance business amounted to Rs.27,585 million, representing 18.79 percent (2012: Rs.29,602 million; 22.56 percent).
Accordingly, the total investment of both long-term insurance business and General insurance business in government securities amounted to Rs.121,610 million (2012: Rs.127,749 million) as at December 31, 2013.
The insurance industry is regulated and supervised by the IBSL in terms of the Regulation of Insurance Industry Act, No. 43 of 2000.
In terms of Section 98 of the Act, the IBSL inquires into policyholders’ grievances in connection with insurance claims and matters relating to qualifications of agents. During the period, the IBSL inquired into a total of 298 such complaints. Out of 21 insurance companies (insurers) operating as at December 31, 2013, 12 are composite companies (dealing in both General and long-term insurance businesses), six companies carry on General insurance business and three companies carry on only long-term insurance business.
Fifty nine insurance brokering companies registered with the IBSL in terms of Section 82 of the Act as at December 31, 2013, engaged in insurance brokering business concentrating mainly in General insurance business.
As confirmed by the insurance brokering companies, the premium income generated through General insurance business amounted to Rs.14,192 million (2012: Rs.12,532 million) while the premium income generated through long-term insurance business amounted to Rs.191 million (2012: Rs.195 million).
The total premium income from both General insurance business and long-term insurance business generated through insurance brokering companies amounted to Rs.14,383 million during 2013, compared to Rs.12,727 million during the previous year. Thus, the total premium income generated through insurance brokering business witnessed a growth of 13.02 percent during the year 2013 when compared to 2012.
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