Positive growth in 1H
Aug 1, 2010 8:00:00 PM - aussieindolanka.com
The first half of this year has shown a clear improvement in the performance of the country’s insurance industry. The general sector recorded a growth of 6.6 percent and life sector growth was 14 percent over the corresponding period, Insurance Association of Sri Lanka President Manjula de Silva told Daily News Business.
"The life insurance growth is significant as it recorded 3.1 percent negative growth for the first six months last year. The market is showing signs of recovery. All the major sub classes within the general insurance contributed to this growth", he said. The life insurance market growth for the entire last year was 0.7 percent. Both areas of general and life insurance recorded a strong recovery over this year.
The insurance industry has huge opportunity due to improved economic situation.
The low interest rate regime and improvement in leasing and lending activities also have positive impact on the industry performance. The recent reduction in import duty structure related to motor vehicles will increase imports creating opportunity for the insurance industry.
The peaceful situation has attracted investments in tourism, agriculture and fisheries that have created business opportunities for the insurance industry.
During this year one new company has obtained operating licence and will enter into the industry. There are 18 insurance companies at present.
The insurance industry together with all the insurance companies will launch a campaign to create awareness as a collective effort to promote business.
Many insurance companies are increasingly focusing on markets outside Colombo to take the message of insurance to grass roots level. Local insurance industry offers high quality service to the public on par with the regional markets. The service quality has also won international awards including financial reporting at South Asian level, de Silva said.
The large-scale projects, growth in the export and import trade, marine and motor industry will provide an impetus for the insurance industry growth.