Insurance penetration as measured by annual Gross Written Premium (GWP) as a percentage of gross domestic products marginally improved to 1.1 per cent at end Q2 of 2024 compared to 1.0 percent at end Q2 of 2023.
Insurance penetration in the country was at a lower level during the first half (H1) of 2024.
The sector comprises 29 companies at the end Q2 of 2024, of which 15 operated as exclusive long- term insurance companies and 13 as exclusive general insurance companies, while one company had both long-term and general insurance businesses.
The insurance sector demonstrated a notable growth of 11.1% in GWP during the first half of 2024 compared to the corresponding period of 2023. GWP of the long-term insurance sub sector grew significantly by 17.4% during H1 of 2024 compared to 10.4% recorded in H1 of 2023, while the GWP growth of the general insurance sub sector declined to 4.2% during H1 of 2024 compared to 7.2% recorded during H1 of 2023.
The decline in growth of GWP was observed across all categories within the general insurance subsector, except for health insurance. However, a growth of GWP of the general insurance sub sector could be expected with continued revival of economic activities.
Assets growth of the overall insurance sector decelerated to 10.5 percent at end Q2 of 2024 compared to a growth of 12.9% at end Q2 of 2023.
Aassets of the general insurance sub sector contracted by 4.5%, while the assets of the long-term insurance sub sector recorded a growth of 16.5% at end Q2 of 2024.
Both subsectors of the insurance industry showed significant exposure to sovereigns at the end Q2 of 2024. Government securities continued to dominate the investment portfolio of both subsectors, constituting 61.5% and 61.2% by long term insurance subsector and general insurance sub sector respectively at end Q2 of 2024.
Profitability of the insurance sub sectors recorded mixed performance during H1 of 2024 compared to 1H of 2023. The liquidity level of the Insurance sector continued to remain at a healthy level mainly due to increased investments in the Government securities.
