Sri Lanka insurance sector sees skills shortage: rating agency

Jan 09, 2010 (LBO) – Sri Lanka’s insurance business is set for growth as the economy recovers from a war but is constrained by a shortage of skilled people and lack of awareness among the public, RAM Ratings Lanka said. The lack of qualified insurance personnel is a constraint on the industry’s growth, the rating agency said in a report on the island’s insurance sector.

Few insurance companies have qualified insurers at the helm, it said. There is also a dearth in actuaries.

The rating agency noted that actuaries are vital in determining reserving requirements, product pricing and bonuses.

RAM Ratings also said lack of public awareness of insurance and poor penetration rates is also a problem for growth.

The insurance industry is poised for growth, in line with the improving macroeconomic recovery prospects, the report said.

Sri Lanka’s ethnic war ended in May 2009 with the defeat by government forces of Tamil Tiger separatists.

However, lack of awareness on insurance products remains a major stumbling block for expansion, RAM Ratings said.

Although the insurance regulator and insurance companies are trying to promote knowledge of insurance, more