Friday 3 July 2015

Insurance Industry performs well in 2014


The insurance industry has recorded another successful year in 2014.

"Year 2014 was another positive year for the Sri Lankan insurance industry, which recorded growth in Gross Written Premium (GWP) of both Long Term and General Insurance business sectors along with the assets of insurance companies,"Insurance Board of Sri Lanka Director General, Damayanthi Fernando said.

The total Gross Written Premium (GWP) generated by insurance companies grew by 5.14% and total assets increased by 13.81% year on year.

The total GWP income for Long Term Insurance and General Insurance businesses in 2014 was Rs. 99,872 million compared to 2013 amounting to Rs. 94,987 million which re-ected a growth of 5.14%,the DG said.

The Long Term Insurance Business recorded premium income of Rs. 44,610 million (2013: Rs. 41,676 million) while the General Insurance Business recorded a premium income of Rs. 55,262 million during 2014 (2013: Rs. 53,311 million).

Thus, Long Term Insurance Business and General Insurance Business witnessed a growth of 7.04% and 3.66% respectively in GWP Income during 2014 when compared to 2013.

The total assets held by insurance companies amounted to Rs. 406,827 million as at December 31,2014 when compared to Rs. 357,465 million recorded as at the end of 2013, reflecting a growth of 13.81%.

The assets of Long Term Insurance Business amounted to Rs. 249,850 million (2013: Rs. 216,275 million), while the assets of General Insurance Business amounted to Rs. 163,834 million (2013: Rs. 148,410 million) indicating a growth rate of 15.52% and 10.39% respectively year on year in Government Securities.

At the end of 2014, the investment of total assets of Long Term Insurance Business in Government Debt Securities amounted to Rs. 111,600 million representing 44.67% (2013: Rs. 93,539 million; 43.25%), while such investment of the total assets of General Insurance Business amounted to Rs. 25,496 million representing 15.56% (2013: Rs. 28,163 million; 18.98%). Accordingly, the total investment of both Long Term Insurance Business and General Insurance Business in Govemment Debt Securities amounted to Rs. 137,096 million (2013: Rs. 121,702 million) as at December 31,2014.

Dispute Resolution and Investigations IBSL, under its overall objective of safeguarding the interests of policyholders, inquires into policyholders' grievances in connection with insurance claims pertaining to life and general insurance policies and matters relating to qualifications of agents.

In terms of Section 98 of the Regulation of Insurance Industry Act No. 43 of 2000, IBSL is empowered to investigate into and resolve disputes between insurers and claimants relating to the settlement of claims which are referred to IBSL by claimants. In 2014, 284 new matters were referred to the IBSL.

IBSL settled and closed a total of 230 complaints received in 2013 and 2014.

Out of the matters settled, 38 claims were honoured by insurers upon the intervention of IBSL.
www.dailynews.lk

No comments:

Post a Comment