Insurance GWP increases
The overall Gross Written Premium (GWP) income for long term
insurance and general insurance businesses was Rs. 68,493.345 million
compared with the previous year amount of Rs. 57,252 million which
reflected a growth of 19.63 percent. The Insurance Board of Sri Lanka (IBSL)
The general insurance business has demonstrated a progress of its
overall gross written premium income during 2010 when compared to the
year 2009. The long term insurance business also showed a progress of
its overall gross written premium income during the first half of 2010
when compared to the year 2009. The overall gross written premium income
of general insurance business amounted to Rs. 37,342.19 million (2009 -
Rs. 33,485 million) while the overall gross written premium income of
long term insurance business amounted to Rs. 31,151.155 million (2009 -
Rs. 23,767 million) during the last year.
The investment in Government Securities represents 50.19 percent (Rs.
70,059.073 million) of the total assets of long term insurance business
and 23.70 percent (Rs. 19,584.153 million) of the total assets of
general insurance business at the end of 2010.
This is in excess of the required amount of investment in Government
Securities by the Act.
During the year 2010, a total of 503,543 life insurance policies have
been issued, giving a penetration rate of 10.9 percent. This shows an
improvement when compared with the rate of penetration in the year 2009,
which was 10.4 percent with a total of 464,249 life insurance policies
issued during the year 2009. Insurance brokering companies and insurance
agents, as intermediaries, make a significant contribution to the
insurance industry. Forty one (41) insurance brokering companies,
registered with the IBSL in terms of Section 82 of the Act, were engaged
in insurance brokering business. Insurance brokering companies mainly
concentrated on general insurance business and their total gross written
premium generated from both general insurance business and long term
insurance business amounted to Rs 9,539.66 million during 2010, compared
with the previous year amount of Rs 8,885.67 million, which reflected a
growth of 7.36 percent.
Gross Written Premium (GWP) Long Term Insurance and General
Insurance Business (Rs. million)
2006 2007 2008 2009 2010
Long Term Insurance 17,104 20,729 23,613 23,767 31,151.16
General Insurance 25,931 31,156 34,553 33,485 37,342.19
Total (Rs. million) 43,035 51,885 58,166 57,252 68,493.35