Annual levy on insurance firms hiked to 0.2% of GWP to fund IRCSL operations

Monday, 10 March 2025 05:37 - - {{hitsCtrl.values.hits}}

CoPF Chair Dr. Harsha de Silva criticises IRCSL’s regulatory failures, especially handling of MBSL Insurance
Pushes for insurance reserve funds to be used in development projects via banking mechanisms
Calls for reforms to streamline third-party insurance claims and modernise sector

The Committee on Public Finance (CoPF) last week approved an increase in the annual levy paid by insurance companies to the Insurance Regulatory Commission of Sri Lanka (IRCSL).

Consequently the charge will rise from 0.125% to 0.2% of gross written premiums (GWP), to help cover the Commission’s growing costs.

However, CoPF Chairman SJB MP Dr. Harsha de Silva did not hold back in his criticism of the IRCSL’s regulatory shortcomings, particularly in its handling of the MBSL Insurance situation.

In a broader push for financial reform, the committee also explored ways to channel funds from insurance reserves into development projects through banking mechanisms. The IRCSL’s Director General was instructed to draft a regulatory framework after consulting industry stakeholders.

He also demanded a strategic plan to modernise the insurance sector and called for urgent reforms to streamline third-party insurance claims, which remain mired in bureaucratic delays.