The Sri Lanka life insurance sector is gaining momentum, with listed insurers reporting solid gross written premium (GWP) growth in 2024 and the first half of 2025, while low insurance penetration and demographic trends point to significant expansion potential.
GWP rises in 2024 and 1H25 as low penetration and ageing population create long-term upside
The Sri Lanka life insurance industry is showing renewed strength as gross written premiums across listed insurers rose in 2024 and continued into the first half of 2025, according to Softlogic Stockbrokers. Market leaders Ceylinco Life, Softlogic Life and Sri Lanka Insurance Life accounted for roughly 21.1–21.2%, 17.7% and 14.6% of market share respectively at end-June, reflecting incremental gains in a sector that remains under-penetrated by regional standards.
Industry analysts note that Sri Lanka’s life insurance penetration rate—estimated at about 0.61% in 2024—is among the lowest in Asia, signalling large potential for growth as awareness and disposable incomes rise. The country’s ageing population, with more than 12% aged 65 or above in 2024, is also expected to lift long-term demand for retirement and protection products. While traditional whole-life and endowment policies still dominate sales, protection-focused plans are gradually gaining traction as consumer awareness of risk coverage increases.
Company-level performance underlines the recovery. Ceylinco Life strengthened its leading position—rising from 20.3% market share at end-2024 to roughly 21.2% in 1H25—while Softlogic Life improved from 17.2% to 17.7% over the same period. Insurers such as AIA and HNB Assurance posted notable year-on-year GWP growth in H1, with AIA recording the highest y-o-y expansion of 35.8% (marking Rs 13.8 million) and HNB Assurance close behind at 34.8%. These gains reflect both richer product mixes and expanding distribution reach.
Looking ahead, the sector’s medium-term outlook is positive. Greater market penetration, product diversification toward protection and unit-linked offerings, digital distribution channels, and targeted marketing to older cohorts should support sustained premium growth. Regulators and industry participants will also need to focus on product innovation, consumer education, and ensuring solvency and governance standards to convert latent demand into sustainable policyholder growth. For investors, the combination of improving market metrics and still-attractive valuations makes the life insurance segment a key area to watch as Sri Lanka’s broader financial services recovery continues.