“One undeniable truth we all face is the uncertainty of life. In a world where change is constant and the future unpredictable, the need for financial security and empowerment has become more essential than ever,” says Senath Jayatilake, Chief Executive Officer of Union Assurance while highlighting the pivotal role of the Life Insurance industry in strengthening Sri Lanka’s socio-economic landscape.

How do you view the evolution of the Life Insurance industry in Sri Lanka?

For decades, the Life Insurance industry in Sri Lanka has struggled against a persistent misconception: that its value is only realised after the death of the policyholder. This outdated belief has limited its reach and impact, preventing many from experiencing the full potential of what Life Insurance truly offers.

In reality, Life Insurance is a promise for the living. It is part of a proactive financial strategy that supports individuals and families throughout their lives. From facing medical emergencies, preparing for retirement, planning a child’s education, to building a buffer against life’s uncertainties, Life Insurance helps people protect their dreams and navigate challenges with confidence. In today’s fast-paced socio-economic landscape, people are looking for financial solutions that offer both security and growth. Life Insurance meets this need by acting as a dynamic tool that adapts to changing life stages and priorities.

What role does Life Insurance play in the household financial strategy?

At the heart of a household’s financial strategy should be two essential pillars: empowerment and protection. Empowerment is about building wealth—saving, investing and planning for life’s goals. Protection ensures that these goals are not derailed by unexpected events. Life Insurance uniquely bridges these two pillars, offering both disciplined savings and robust financial security. It is not just a safety net—it is a powerful enabler of long-term well-being.

This balance is ever more important in today’s volatile economic climate. Historically, Sri Lanka has faced recurring economic volatility, with our household savings rates hovering around 24% as reported in 2024. This means that three out of four households lack savings to fall back on, leaving them vulnerable and without a safety net to withstand financial shocks. Meanwhile, societal dynamics are shifting. Dual-income households are on the rise, which means that the loss of one income can have dire consequences. Single-parent families face even greater financial risks. Life Insurance can help close these gaps. It provides a structured way to save while offering a financial cushion in times of crisis supporting families through life’s transitions ensuring they can move forward with confidence.

What Steps Can Sri Lanka Take to Bring the Real Impact of Life Insurance to Life?

To truly unlock the potential of Sri Lanka’s Life Insurance industry, several strategic imperatives must be addressed. First and foremost is financial inclusion. With only around 10% of the insurable population currently covered, the country faces a significant protection gap. Bridging this divide requires innovative approaches such as mobile-based distribution, community-driven outreach programmes and even pushing embedded Life Insurance solutions. These can make Life Insurance more accessible, affordable and relevant to underserved segments in society. Additionally, improving financial literacy is essential. Many individuals remain unaware of how Life Insurance works or how it can benefit them beyond death coverage. Targeted education campaigns, simplified products and transparent communication can help build trust and drive adoption.

Secondly, like other financial service providers, the Life Insurance sector must view digitalisation not just as a performance enhancement tool but as a strategic necessity for evolution and long-term relevance. By leveraging technology, companies can make the entire customer journey more seamless and user-friendly, delivering real-time responsiveness, transparency and complete visibility into the status of customer requests. This digital ecosystem empowers customers by giving them greater control over their Life Insurance policies, fostering trust and engagement. Moreover, digital platforms enable insurers to personalise Life Insurance propositions, streamline operations and harness data analytics to better understand customer needs and behaviours.