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Sri Lanka Life And Non-Life Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Market Report I 2025-06-01 I 150 Pages I Mordor Intelligence

Sri Lanka Life And Non-Life Insurance Market Analysis

The Sri Lanka life and non-life insurance market stands at USD 1.2 billion in 2025 and is on course to reach USD 2.37 billion by 2030, expanding at a strong 14.58% CAGR. Rapid economic normalization following the 2022 crisis, visible in 5% GDP growth and easing inflation in 2024, lifts household spending and corporate risk appetite, underpinning premium growth. A sharp rise in healthcare costs, with private treatment priced 2.61 times public-sector tariffs, intensifies demand for medical coverage. Digital adoption accelerates distribution as mobile penetration exceeds 150%, allowing insurers to reach rural customers previously outside formal channels. Regulatory reforms that relax bancassurance rules, together with state-bank network expansions, are lowering acquisition costs and broadening product access. At the same time, competitive pricing squeezes earnings. Insurers saw an 8.31% profit contraction in 2024, even as premium volumes climbed 16.5%, reinforcing the need for diversified, higher-margin lines.

Sri Lanka Life And Non-Life Insurance Market Trends and Insights



Rising Health Insurance Demand Amid Growing Non-Communicable Disease Burden in Urban Sri Lanka

Non-communicable diseases now account for more than 80% of total mortality, and an average clinic visit costs LKR 3,000 (USD 9.0), while a private hospital stay costs LKR 3,100 (USD 9.5), straining household budgets and prompting consumers to seek comprehensive medical coverage. Of households managing chronic illness, 51% have faced catastrophic out-of-pocket spending, elevating the perceived value of private health policies. Western and Central provinces lead uptake because they host the bulk of tertiary care facilities and exhibit higher disposable incomes. Insurers are responding with gender-specific products such as Janashakthi's "Shanthi" plan, which bundles life and critical-illness benefits for spouses under a single contract. As disposable incomes recover and medical inflation outpaces overall CPI, health insurance is poised to remain the fastest-growing component of the Sri Lanka life and non-life insurance market.

Digitally Enabled Micro-Insurance Adoption Among Under-banked Rural Populations

Roughly 70% of rural residents are under-banked, yet mobile phone penetration exceeds 150%, presenting a ready platform for low-ticket insurance. Janashakthi's "Janasevaya Social Security Plan" costs only LKR 30 (USD 0.1) per month, demonstrating that affordability barriers can be tackled with digital onboarding and usage-based pricing. New rules finalized in 2024 require telecom operators to embed clearer disclosure during subscription, which boosts consumer trust and curbs inadvertent enrollments. Over the long term, micro-insurance could inject a steady flow of small-value premiums, diversifying the Sri Lanka life and non-life insurance market and smoothing cyclicality in urban demand.

Low Insurance Penetration Due to Financial Literacy Gaps and Informal Risk-Sharing

Penetration stood at only 0.8% of GDP in 2023, well below Asian peers, largely because community-based pooling mechanisms reduce the perceived need for formal protection. In rural areas, cash incomes are erratic, making annual premium payments difficult, while the complexity of riders and exclusions deters uptake. Educational campaigns must align with cultural norms so as not to appear to replace traditional mutual aid. Without aggressive literacy interventions, low awareness could continue to dampen growth prospects for the Sri Lanka life and non-life insurance market.

Other drivers and restraints analyzed in the detailed report include:

Bancassurance Growth Driven by State Bank Network Expansions Post-Regulatory Relaxations / Increased Demand for Trade Credit & Marine Insurance from Export-Oriented SMEs in Apparel & Tea / Foreign-Exchange Volatility Impacting Insurer Capital Adequacy Requirements /

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Life products generated 58.7% of the Sri Lanka life and non-life insurance market size in 2024, anchored by endowment and whole-life policies that appeal to family-oriented cultural norms. Unit-linked plans are gaining traction because they blend investment returns with mortality protection, offering upside that pure-term policies lack. However, medical inflation rising faster than CPI is shifting consumer budgets toward health cover, translating to an 8.59% CAGR for medical lines through 2030. The health segment's share of the Sri Lanka life and non-life insurance market size is projected to reach 24% by 2030, narrowing the gap with life policy contributions.

Motor covers remain mandatory yet struggle with profitability as spare parts inflation and accident frequency lift claims ratios. Carriers offset this by promoting property, specialty, and marine products that command higher margins. Trade credit and cargo lines ride on export growth, notably serving apparel and tea corridors connecting Colombo and Kandy, reinforcing product diversification across the Sri Lanka life and non-life insurance market.

The Sri Lanka Life and Non-Life Insurance Market is Segmented by Insurance Type (Life Insurance (Whole Life, Term Life, and More), Non-Life Insurance (Motor, Health and Medical, and More)), Distribution Channel (Direct (Insurer Sales Force), Agency/Broker, and More), End-User (Individuals and Households, Small and Medium Enterprises (SMEs), and More), and Region. The Market Forecasts are Provided in Value (USD).

List of Companies Covered in this Report:

Sri Lanka Insurance Corporation (SLIC) / Ceylinco Life Insurance PLC / Allianz Insurance Lanka Ltd / AIA Insurance Lanka Ltd / Softlogic Life Insurance PLC / Union Assurance PLC / Janashakthi Insurance PLC / HNB Assurance PLC / Fairfirst Insurance Ltd / Continental Insurance Lanka Ltd / People's Insurance PLC / Sanasa Insurance Company Ltd / Cooperative Insurance Company PLC / Amana Takaful PLC / MBSL Insurance Company Ltd / Arpico Insurance PLC / LOLC General Insurance Ltd / Orient Insurance Ltd / National Insurance Trust Fund Board (NITF) / LIC Lanka Ltd /

Additional Benefits:

The market estimate (ME) sheet in Excel format /
3 months of analyst support /

1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Health Insurance Demand Amid Growing Non-Communicable Disease Burden in Urban Sri Lanka
4.2.2 Digitally Enabled Micro-Insurance Adoption Among Under-banked Rural Populations
4.2.3 Bancassurance Growth Driven by State Bank Network Expansions Post-Regulatory Relaxations
4.2.4 Increased Demand for Trade Credit & Marine Insurance from Export-Oriented SMEs in Apparel & Tea
4.2.5 Climate-Resilient Crop & Livestock Insurance Schemes Backed by Multilateral Funding
4.2.6 Ageing Population Accelerating Pension & Annuity Product Uptake
4.3 Market Restraints
4.3.1 Low Insurance Penetration due to Financial Literacy Gaps and Informal Risk-Sharing
4.3.2 Foreign-Exchange Volatility Impacting Insurer Capital Adequacy Requirements
4.3.3 Fragmented Agency Force with High Churn Raising Acquisition Costs
4.3.4 Political Risk & Policy Uncertainty Damping Long-Term Life Product Sales
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook (Insurtech & Analytics)
4.7 Investments & Capital Allocation by Insurers
4.8 Consumer Needs & Behaviour Analysis - Insurtech Perspective
4.9 Porter's Five Forces
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Buyers / Policyholders
4.9.3 Bargaining Power of Suppliers (Reinsurers, IT Vendors)
4.9.4 Threat of Substitute Products (Informal Savings, Mutual Aid)
4.9.5 Intensity of Competitive Rivalry

5 Market Size & Growth Forecasts (Value, Gross Written Premium)
5.1 By Insurance Type
5.1.1 Life Insurance
5.1.1.1 Whole Life
5.1.1.2 Term Life
5.1.1.3 Unit-Linked Insurance Plans (ULIPs)
5.1.1.4 Annuities & Pension
5.1.2 Non-Life Insurance
5.1.2.1 Motor
5.1.2.2 Health & Medical
5.1.2.3 Property / Homeowners
5.1.2.4 Travel
5.1.2.5 Agriculture (Crop & Livestock)
5.1.2.6 Marine & Cargo
5.1.2.7 Liability & Specialty
5.2 By Distribution Channel
5.2.1 Direct (Insurer Sales Force & Branch)
5.2.2 Agency / Broker
5.2.3 Bancassurance
5.2.4 Digital / Online Platforms
5.2.5 Microfinance & Cooperative Networks
5.2.6 Mobile / Telecom Partners
5.3 By End-User
5.3.1 Individuals & Households
5.3.2 Small & Medium Enterprises (SMEs)
5.3.3 Large Corporates & Institutional
5.4 By Region
5.4.1 Western Province
5.4.2 Central Province
5.4.3 Southern Province
5.4.4 Northern Province
5.4.5 Eastern Province
5.4.6 North Western Province
5.4.7 North Central Province
5.4.8 Sabaragamuwa Province
5.4.9 Uva Province

6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves & Partnerships
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
6.4.1 Sri Lanka Insurance Corporation (SLIC)
6.4.2 Ceylinco Life Insurance PLC
6.4.3 Allianz Insurance Lanka Ltd
6.4.4 AIA Insurance Lanka Ltd
6.4.5 Softlogic Life Insurance PLC
6.4.6 Union Assurance PLC
6.4.7 Janashakthi Insurance PLC
6.4.8 HNB Assurance PLC
6.4.9 Fairfirst Insurance Ltd
6.4.10 Continental Insurance Lanka Ltd
6.4.11 People's Insurance PLC
6.4.12 Sanasa Insurance Company Ltd
6.4.13 Cooperative Insurance Company PLC
6.4.14 Amana Takaful PLC
6.4.15 MBSL Insurance Company Ltd
6.4.16 Arpico Insurance PLC
6.4.17 LOLC General Insurance Ltd
6.4.18 Orient Insurance Ltd
6.4.19 National Insurance Trust Fund Board (NITF)
6.4.20 LIC Lanka Ltd

7 Market Opportunities & Future Outlook
7.1 White-Space & Unmet-Need Assessment

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