Sri Lanka’s insurance industry posts 54.6% GWP growth over five years

GWP for the first quarter up 10.6% year-on-year to $0.3b.

Sri Lanka’s insurance industry is expected to maintain steady growth after showing resilience through recent economic challenges.

The sector’s gross written premium (GWP) rose 54.6% over five years, reaching $1.1b (LKR322b) in 2024 from $0.7b (LKR208b) in 2020. 

Growth continued into 2025, with GWP for the first quarter (Q1 2025) up 10.6% year on year to $0.3b (LKR92.2b).

Life insurance drove the increase, rising 21.4% to $0.2b (LKR51.1b), whilst general insurance recorded a slight dip of 0.4% to $0.1b (LKR41.2b).

Total industry assets also expanded, climbing to $4.2b (LKR1.27t) in Q1 2025, a 14.2% rise from the previous year.

Life insurance assets grew 15.7% to $3.2b (LKR954.7b), whilst general insurance assets rose 9.6% to $1.0b (LKR300.5b).

Claims incurred increased 13.3% year on year to $0.1b (LKR32.1b) in Q1 2025, with life claims up 20.1% and general insurance claims slightly lower at 1.3% below last year.

Profitability softened in early 2025.

Industry profit before tax fell compared to Q1 2024, with life insurance profits down 22.6% to $0.02b (LKR5.0b).

General insurance profits inched up 1.8% to $0.02b (LKR5.6b). 

Meanwhile, brokers expanded their role, with GWP generated through intermediaries up 79.3% between 2020 and 2024, reaching $0.2b (LKR49.9b).

With life insurance continuing to drive growth, rising assets, and brokers deepening market penetration, the outlook suggests the sector will remain a key part of Sri Lanka’s economic recovery, though profitability pressures may persist in the near term.

($1.00 = LKR302.42)