Insurance Industry GWP record growth of 15.27%, in 3Q 2022 | Daily News

Insurance Industry GWP record growth of 15.27%, in 3Q 2022

Gross Written Premium
Gross Written Premium

The total Gross Written Premium (GWP) of the insurance industry for Long Term and General Insurance Businesses for the period ended 31 September 30, 2022 was Rs. 190,456 million (Q3, 2021: Rs.165,227 million), recording a growth of 15.27%, and a premium increase of Rs. 25,229 million when compared to the same period in the year 2021. The GWP of Long-Term Insurance Business was Rs. 98,308 million (Q3, 2021: Rs. 86,626 million)recording a growth of 13.49%.

The GWP of General Insurance Business was Rs. 92,149 million (Q3, 2021: Rs. 78,601 million) recording a growth of 17.24%.

The GWP of the industry had increased to Rs. 233,512 million in year 2021 when compared to Rs. 164,960 million recorded in 2017 and displayed a growth of 41.55%.

The growth in GWP of long-term insurance business has been steady over the last five years, with over 10% growth in each year. The GWP of general insurance business witnessed premium growth of 17.34%, 7.71% and 7.06% in 2017, 2018 and 2019 respectively. However, the general insurance business exhibited a negative premium growth of 2.25% in 2020.

In contrast, the long-term insurance business displayed a positive momentum in 2020 and increased by 16.01% as the outbreak of the pandemic heightened the risk awareness of the public and enhanced the need for life protection. The general insurance business rebounded in 2021 and achieved a moderate growth of 3.32%.

Claims incurred by insurance companies during the 3rd Quarter of 2022 in both Long-Term and GeneralInsurance Business was Rs. 86,569 million (Q3, 2021: Rs. 66,866 million) showing a significant increase of 29.47% year-on-year. The Long-Term Insurance claims, including maturity and death claims, amounted to Rs. 40,631 million (Q3, 2021: Rs. 32,565 million) showing a growth rate of 24.77%.

The claims incurred in General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 45,937 million (Q3, 2021: Rs. 34,301 million) with a growth rate of 33.92%.

The total net claims incurred by the long-term insurance sector amounted to Rs. 46,113 million in 2021 when compared to Rs. 26,371 million recorded in 2017. The total claims incurred by life insurers continued to grow over the last five years. Claims incurred to policyholders by the long-term insurers can be categorized into Disability Benefits, Death, Surrenders, Maturity Benefits and Other benefits.

The net claims incurred by the general insurance sector increased by 20.16% from 2017 to 2019, however, year 2020 recorded the lowest claims incurred value for the past five years with a drop of 25.97%.

However, the total net claims incurred by the general insurance sector increased to Rs 48,317 million excluding SRCC & T in 2021, showing an increase of 13.60% compared to Rs 42,534 million in 2020.

The value of total assets of insurance companies has increased to Rs. 921,602 million as at 30th September 2022, when compared to Rs. 854,994 million recorded as at end of 30th September 2021 reflecting a growth of 7.79%.

 The assets of the Long-Term Insurance Business amounted to Rs. 656,631 million (Q3, 2021:Rs. 615,538 million) indicating a growth rate of 6.68%.

The assets of the General Insurance Business amounted to Rs. 264,971 million (Q3, 2021: Rs. 239,456 million) depicting a growth rate of 10.66% at the end of 3rd quarter 2022.

. The total asset portfolio of the insurance industry reached Rs. 888,377 million by the end of 2021, displaying growth over 10%each year over the last five years. An increase in the overall asset base was mainly attributable to expansion in the business volumes and resultant elevation in liability reserves.

However, the rate of growth has slowed in 2021 due to increased dividend distributions by insurers during the year after lifting dividend restrictions imposed in 2020 and the resultant usage of assets to fund such distributions made a notable impact on the asset growth of the industry.


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