Insurance claims rise 19.9% to Rs. 46 Bn in Q1

Insurance claims incurred by Sri Lanka's insurance industry increased by 19.88% year-on-year to Rs. 45.98 billion in the first quarter of 2026, up from Rs. 38.35 billion in the corresponding period of 2025, according to the Insurance Regulatory Commission of Sri Lanka's Sri Lanka Insurance Industry Performance Review.

The Long-Term (Life) Insurance sector recorded claims of Rs. 28.05 billion during the quarter, compared with Rs. 23.18 billion a year earlier, reflecting a 21.03% increase. The Commission said the growth in claims was broadly in line with the continued expansion of the Life Insurance business during the review period.

The General Insurance sector reported claims of Rs. 17.93 billion in Q1 2026, compared with Rs. 15.18 billion in Q1 2025, representing an 18.13% increase.

According to the Commission, the rise in General Insurance claims includes settlements relating to insured events during the period, including claims arising from Cyclone Ditwah, as well as the overall growth of the General Insurance business.

The report noted that the overall increase in claims across both Life and General Insurance reflects the industry's continued commitment to providing financial protection and meeting its contractual obligations to policyholders.

During the review period, insurers continued to settle valid insurance claims, including those related to Cyclone Ditwah, while the Insurance Regulatory Commission of Sri Lanka continued to monitor the industry to promote the fair and efficient handling of claims and safeguard policyholders' interests.

The Commission also said the industry's performance should be viewed against the backdrop of the lingering impact of the COVID-19 pandemic, the 2022 economic crisis and political instability, high inflation, currency depreciation, and recurring climate-related events such as floods and droughts, all of which have continued to shape the operating environment for the insurance sector.