The Insurance Board of Sri Lanka (IBSL) is studying the Sri Lankan industry and international practices to modernize and reform the insurance regulatory framework in the country.
IBSL is trying to bring modern regulatory practices to an industry that has seen little regulatory supervision during the last half century.
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rnWhen the IBSL took over, there were concerns about the stability of some players.rn
rnSome sectors such as motor were also unprofitable, which undermined the financial strength of the firms.rn
rnThe IBSL lifted the tariff of motor insurance, which was making losses.rn
rnThough prices went up, firms are now making profits and service levels have also improved.rn
rnIBSL has now turned its attention to fire insurance.rn
rnSome players in the industry are complaining that fire premiums have fallen so low that the industry can no longer attract good re-insurers abroad.rn
rnldblquote When you bring down the prices there are re-insurers who said lquote below this price we dont want