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GI claim settlements of 13 IASL companies hit Rs. 51 billion for FY 2021

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Table: Total number of claims and claims paid by the 13 GI companies according to class of business

The general insurance (GI) industry plays a pivotal role in driving financial and economic growth both locally and globally. Over the past year, with the continuing economic volatility, companies payed more heed to reducing the risks of uncertainty and enormous losses. While the GI sector is instrumental in reducing such risk, it simultaneously encourages companies to take on new investment and innovation opportunities, thereby resulting in healthy market competition as well as sustenance of communities.

In Sri Lanka, the GI claim settlements of 13 insurance companies falling under the purview of the Insurance Association of Sri Lanka (IASL) stood at over Rs. 51 billion for the financial year (FY) 2021, where a total of 816,349 claims were settled during the same period.

Accordingly, the 13 general insurance companies are Sanasa General Insurance Company Ltd., People’s Insurance PLC, Fairfirst Insurance Ltd., Ceylinco General Insurance Ltd., HNB General Insurance Ltd., Co-operative Insurance Company Ltd., MBSL Insurance Company Ltd., Amana Takaful PLC, LOLC General Insurance Ltd., Sri Lanka Insurance Corporation Ltd., Orient Insurance Ltd., Allianz Insurance Lanka Ltd., and Continental Insurance Lanka Ltd.

These GI claim settlements were made across seven classes of business – namely, fire and engineering, marine, medical, workmen compensation, personal accident, general accident / miscellaneous, and motor insurance. Out of this, the category of motor insurance recorded the highest amount of claim settlements at over Rs. 27 billion. The total claims paid stood at Rs. 51,737,934,138.33.

Commenting on the GI claim settlements for FY2021, IASL President Iftikar Ahamed stated, “The general insurance industry has coped and performed exceptionally well despite a challenging economy. Claim settlement has been crucial especially due to the pandemic and subsequent hardships faced by people, where the insurance sector has stood with their policyholders, and the customer-centric attitude adopted by these general insurance companies has played a vital role in quick claim disbursement and strengthened relationships.”

Established in 1989, IASL upholds general insurance best practices and represents the industry in Sri Lanka. Currently encompassing 29 registered life and general insurance companies in the country, IASL is the foremost insurance industry body in the country, whose key objectives are to promote and drive insurance growth and penetration by inculcating professionalism in the insurance industry and harmonizing the overall goals and objectives of all industry participants.



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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