Summary
GlobalData’s "Governance, Risk and Compliance - The Sri Lankan Insurance Industry", report is the result of extensive research into the insurance regulatory framework in Sri Lanka.
It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.
The report brings together GlobalData’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.
The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in Sri Lanka, including -
- An overview of the insurance regulatory framework in Sri Lanka.
- The latest key changes, and changes expected in the country’s insurance regulatory framework.
- Key regulations and market practices related to different types of insurance product in the country.
- Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Sri Lanka.
- Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.
- Details of the tax and legal systems in the country.
Key Highlights
- The Insurance Regulatory Commission of Sri Lanka regulates and supervises the insurance industry.
- 100% FDI is permitted in the Sri Lankan insurance industry
- The Sri Lankan insurance industry is moving towards risk-based capital system in order to make it on par with the prevailing international practice.
- The placement of non-admitted insurance is not permitted. However, non-admitted reinsurers are permitted to operate in the country.
- With effect from February 2016, all insurers in Sri Lanka are required to be listed on a licensed stock exchange.
Scope
- The report covers details of the insurance regulatory framework in Sri Lanka.
- The report contains details of the rules and regulations governing insurance products and insurance entities.
- The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
- The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
- Gain insights into the insurance regulatory framework in Sri Lanka.
- Track the latest regulatory changes, and expected changes impacting the Sri Lankan insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices pertaining to various types of insurance product.
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Table of Contents
1 INTRODUCTION 6
1.1 What is this Report About? 6
1.2 Definitions 6
2 GOVERNANCE, RISK AND COMPLIANCE 8
2.1 Legislation Overview and Historical Evolution 9
2.2 Latest Changes in Regulation 11
2.3 Legislation and Market Practice by Type of Insurance 17
2.3.1 Life insurance 20
2.3.2 Property insurance 22
2.3.3 Motor insurance 26
2.3.4 Liability insurance 27
2.3.5 Marine, aviation and transit insurance 28
2.3.6 Personal accident and health insurance 28
2.4 Compulsory Insurance 29
2.4.1 Motor third-party liability insurance 29
2.4.2 Personal accident and health insurance 30
2.4.3 Professional indemnity insurance for insurance brokers 30
2.4.4 Weather based crop insurance for farmers 31
2.4.5 Oil pollution insurance 31
2.5 Supervision and Control 32
2.5.1 International Association of Insurance Supervisors (IAIS) 32
2.5.2 Insurance Regulatory Commission of Sri Lanka 33
2.5.3 Insurance Association of Sri Lanka (IASL) 33
2.6 Non-Admitted Insurance Regulations 34
2.6.1 Overview 34
2.6.2 Intermediaries 35
2.6.3 Market practices 35
2.6.4 Fines and Penalties 36
2.7 Company Registration and Operations 37
2.7.1 Types of insurance organization 38
2.7.2 Establishing a local company 38
2.7.3 Foreign ownership 38
2.7.4 Types of license 39
2.7.5 Capital requirements 40
2.7.6 Solvency margin 40
2.7.7 Reserve requirements 42
2.7.8 Investment regulations 43
2.7.9 Statutory return requirements 44
2.7.10 Fee structure 45
2.8 Taxation 46
2.8.1 Insurance premium or policy taxation 46
2.8.2 Withholding taxes on premium paid overseas 46
2.8.3 Corporate tax 46
2.8.4 VAT 47
2.8.5 Captives 47
2.9 Legal System 48
2.9.1 Introduction 48
2.9.2 Access to court 49
2.9.3 Alternative dispute resolution 49
3 APPENDIX 51
3.1 Methodology 51
3.2 Contact GlobalData 51
3.3 About GlobalData 52
3.4 GlobalData’s Services 53
3.5 Disclaimer 54
List of Tables
Table 1: Insurance Industry Definitions 6
Table 2: Sri Lanka - Insurance Regulatory Framework Key Features 8
Table 3: Sri Lanka - Life Insurance Regulatory Framework 20
Table 4: Sri Lanka - Property Insurance Regulatory Framework 22
Table 5: Sri Lanka- Motor Insurance Regulatory Framework 26
Table 6: Sri Lanka - Liability Insurance Regulatory Framework 27
Table 7: Sri Lanka - Benefits of Mandatory Crop Insurance 31
Table 8: Sri Lanka - Corporate Tax Rates for the Financial Year 2018 47
List of Figures
Figure 1: Sri Lanka - Insurance Supervision and Control at Various Levels 32
Figure 2: Sri Lanka - Insurance Regulatory Frameworks for Company Registration and Operation 37
