Insurance Regulatory Commission of Sri Lanka marks 20th anniversary

Thursday, 25 March 2021 00:00 -     - {{hitsCtrl.values.hits}}

The Insurance Regulatory Commission of Sri Lanka (IRCSL) celebrated its 20th anniversary on 1 March. The IRCSL is established in terms of provisions of the Regulation of Insurance Industry Act, No. 43 of 2000 with effect from 1 March 2001.

Being the regulator of the insurance industry, the IRCSL regulates, supervises and facilitates the development of the insurance industry for the last 20 consecutive years with the object of safeguarding the interest of policyholders. The main object and responsibility of the IRCSL is to ensure that insurance business in Sri Lanka is carried on with integrity and in a professional and prudent manner with a view to safeguarding the interest of policyholders and potential policyholders. 

The IRCSL has constantly implemented regulatory measures for the development of the Insurance Industry since its establishment in the year 2001. During the 20 years, the IRCSL has achieved many milestones. Some of the key highlights include:

1. Issuing rules, regulations and guidelines for the effective regulation of the insurance industry to meet its object.

2. Amending the Regulation of Insurance Industry Act, No. 43 of 2000 in years 2007, 2011 and 2017.

3. Initiating the establishment of the South Asian Insurance Regulators’ Forum and organising the inaugural meeting in December 2001. 

4. Obtaining the membership of the International Association of Insurance Supervisors (IAIS), which is the Global insurance standard-setting body.

5. Supporting the establishment of the Insurance Ombudsman Scheme.

6. Introducing the competency test for persons functioning as Insurance Agents conducted through the Sri Lanka Insurance Institute (SLII).

7. Moving from a rules-based capital framework to a risk-based capital framework from year 2015.

8. Designing and adopting a Risk Based Supervision Framework 1 (RBC).

9. Abolishing the composite insurance company system and requiring the segregation of Life and General Insurance Business. 

10. Introducing the Premium Payment Warranty (PPW) clause to streamline the credit practice of the industry. 

11. Requiring the listing of all insurance companies on a Licensed Stock Exchange by the SEC.

12. Developing a curriculum with the National Institute of Education (NIE) to introduce insurance as a subject in the commerce stream of the G.C.E. Ordinary Level and Advanced Level Examinations. 

13. Establishing the fully-fledged Investigation Division to inquire into policyholder grievances and facilitate the settlement of insurance claims and making orders under section 98 as required. 

14. Hosting/organising the 10th annual meeting of the Asian Forum of Insurance Regulators Conference (AFIR) in Colombo in July 2015, under the theme ‘Changing Landscape in Insurance Regulation’.

15. Changing the name of the Regulator from the Insurance Board of Sri Lanka (IBSL) to the Insurance Regulatory Commission of Sri Lanka (IRCSL).

16. Requesting the declaration of 1 September as the National Insurance Day.

17. Engaging in CSR initiatives to create and disseminate awareness on insurance among public. 

18. Conducting consumer education programs/workshops/seminars island-wide on insurance.

The IRCSL will celebrate its 20th anniversary by: 

  • Re-launching the IRCSL website providing more user-friendly and content driven information. 
  • Launching of the IRCSL YouTube Channel, Facebook and LinkedIn pages to disseminate messages on insurance.
  • Recognising its long-standing employees.