Over the past decade, the Life insurance market in Sri Lanka has experienced significant growth and transformation.
Customer preferences: Customers in Sri Lanka are increasingly seeking life insurance products that offer not only financial security but also investment opportunities. This shift in preference can be attributed to the growing awareness among individuals about the importance of long-term financial planning and the desire to build wealth over time.
Trends in the market: One notable trend in the Sri Lankan life insurance market is the rise of unit-linked insurance products. These products, which combine life insurance coverage with investment options, have gained popularity among customers looking to diversify their portfolios and potentially earn higher returns. Additionally, there is a noticeable trend towards customization, with insurance companies offering tailored solutions to meet the specific needs and preferences of different customer segments.
Local special circumstances: The regulatory environment in Sri Lanka plays a crucial role in shaping the life insurance market. With stringent regulations in place to protect policyholders and ensure the stability of the industry, insurance companies are required to adhere to strict guidelines regarding product offerings, pricing, and financial reporting. This regulatory oversight has helped build trust among customers and has contributed to the overall growth and credibility of the life insurance sector in the country.
Underlying macroeconomic factors: The economic landscape in Sri Lanka, characterized by steady economic growth and a rising middle class, has created a favorable environment for the life insurance market to thrive. As disposable incomes increase and financial literacy improves, more individuals are recognizing the importance of life insurance as a tool for wealth preservation and legacy planning. Moreover, the country's demographic trends, such as an aging population and changing family structures, are driving demand for life insurance products that cater to the evolving needs of customers.
Data coverage:
Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.Modeling approach / Market size:
Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).Additional Notes:
The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.
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