Q. Is there further potential in the numerous life insurance market segments?
The insurance penetration rate of Sri Lanka was recorded as 1.39% of the GDP in 2020 and it is very low compared to the global figures. This is a general indication of further potential for insurance business in the Sri Lankan market.
In addition, census reports indicate the rising trend of the aged population and life expectancy. It creates an opportunity for pension or retirement products in the market segment of retired employees. In the meantime, statistical data reveal that there is a tendency of rising of the non-communicable diseases in the public and that demands health care products inclusive of the enhanced benefits in almost all the segments of the insurance market.
Not only that, the prevailing pandemic situation caused the people to feel their need for insurance significantly. Because those who had insurance coverage were able to undergo hardships related to Covid 19 without much financial difficulty. Therefore the insurers have another great opportunity to market their health care and life protection products especially with the coverage for Covid 19 related events. The aforementioned products can easily be marketed to salaried employees, self-employed, and business class market segments.