Market Size of Sri Lanka Life & Non-Life Insurance Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.87 Billion |
| Market Size (2029) | USD 1.09 Billion |
| CAGR (2024 - 2029) | 4.53 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sri Lanka Life & Non-Life Insurance Market Analysis
The Sri Lanka Life & Non-Life Insurance Market size in terms of gross written premiums value is expected to grow from USD 0.87 billion in 2024 to USD 1.09 billion by 2029, at a CAGR of 4.53% during the forecast period (2024-2029).
The life and non-life insurance market of Sri Lanka has been growing steadily over the past few years, with several new players entering the market and offering innovative products to meet the changing needs of consumers. The industry is largely dominated by life insurance, although there has been a recent increase in demand for general insurance products such as motor and health insurance.
One of the key challenges facing the insurance industry in Sri Lanka is a low level of awareness among consumers about the benefits of insurance and the various products available. This has resulted in a relatively low penetration rate for insurance products in the country, with many people still relying on traditional forms of savings and investment.
Despite these challenges, the industry is poised for growth, driven by rising incomes, urbanization, and the increasing importance of the middle class. The government has also been supportive of the industry, with a number of initiatives aimed at increasing access to insurance and improving the regulatory framework.
Sri Lanka Life & Non-Life Insurance Industry Segmentation
Life insurance is a contract between a life insurance company and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their lifetime. Non-life insurance plans are traditional insurance plan that only aims to offer comprehensive financial protection to your family in case of your unfortunate demise during the policy tenure. The Sri Lanka life and non-life insurance market is segmented by insurance type (life insurance (individual and group), non-life insurance (motor, home, and other non-life insurances), and distribution channel (direct, agency, banks, and other distribution channels). The report offers market size and forecasts for Sri Lanka's life & non-life insurance market in value (USD) for all the above segments.
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Sri Lanka Life & Non-Life Insurance Market Size Summary
The Sri Lankan life and non-life insurance market is experiencing steady growth, driven by the entry of new players and the introduction of innovative products tailored to evolving consumer needs. While life insurance remains the dominant segment, there is a noticeable uptick in demand for general insurance products, particularly motor and health insurance. Despite the industry's potential, challenges such as low consumer awareness and penetration rates persist, with many individuals still favoring traditional savings and investment methods. However, factors like rising incomes, urbanization, and a burgeoning middle class are expected to propel market expansion. Government initiatives aimed at enhancing insurance access and regulatory frameworks further support this growth trajectory.
The market is characterized by a competitive landscape, with key players such as Sri Lanka Insurance, Allianz, Ceylinco, Continental Insurance Lanka, and MSB National leading the charge. These companies are leveraging innovations and strategic partnerships to strengthen their market positions. The correlation between life insurance gross written premiums and GDP growth underscores the impact of increasing per capita income on insurance penetration. Additionally, the pandemic has heightened the demand for life protection, while the prevalence of non-communicable diseases is anticipated to drive further interest in health and life coverage. Initiatives like Sri Lanka Insurance's partnership with SLIM Agrisaviya and Ceylinco General Insurance's 'Drive Thru Claims' exemplify the industry's efforts to enhance customer engagement and streamline processes.
Sri Lanka Life & Non-Life Insurance Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Investments by Insurance Companies in Sri Lanka
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1.3 Market Drivers
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1.3.1 Guaranteed Protection Drives The Market
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1.4 Market Restraints
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1.4.1 Long and Costly Legal Procedures
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1.5 Market Opportunities
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1.5.1 Technological Innovations In Insurance Market
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1.6 Consumer Need and Behaviour Analysis- From Insurtech Perspective
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1.7 Porter's Five Forces Analysis
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1.7.1 Threat of New Entrant
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1.7.2 Bargaining Power of Buyer/ Consumer
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1.7.3 Bargaining Power of Suppliers
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1.7.4 Threat of Substitute Product
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1.7.5 Intensity of Competitive Rivalry
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1.8 Government Regulations and Industry Policies
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1.9 Impact of COVID-19 on the market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Life Insurances
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2.1.1.1 Individual
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2.1.1.2 Group
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2.1.2 Non-Life Insurances
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2.1.2.1 Motor
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2.1.2.2 Home
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2.1.2.3 Other Non-Life Insurance
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2.2 By Distribution Channel
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2.2.1 Direct
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2.2.2 Agency
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2.2.3 Banks
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2.2.4 Other Distribution Channels
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Sri Lanka Life & Non-Life Insurance Market Size FAQs
How big is the Sri Lanka Life & Non-Life Insurance Market?
The Sri Lanka Life & Non-Life Insurance Market size is expected to reach USD 0.87 billion in 2024 and grow at a CAGR of 4.53% to reach USD 1.09 billion by 2029.
What is the current Sri Lanka Life & Non-Life Insurance Market size?
In 2024, the Sri Lanka Life & Non-Life Insurance Market size is expected to reach USD 0.87 billion.
