INSURANCE BROKERS IN SRI LANKA

• Brokers governed by an act of parliament.
• Regulation of Insurance Industry Act No. 43 of 2000.
• Regulated by the Insurance Board of Sri Lanka.
• Brokers has to be a corporate entity with a minimum issued share capital of Rs. 2.5 M.
• Must carry professional Indemnity with 2 insurers totaling to Rs. 10 M.
• Quarterly returns to IBSL plus monitoring of annual financial performance.
• Must have qualified and experienced personnel, determined by IBSL.
• Currently 57 Insurance brokers who control approximately 23% of the general insurance segment in the market.

BROKERS INCOME

• Remunerated by the insurer.
• Clients do not pay any fees.
• Current insurance legislation does not legally permit sharing of commission with the client.
• Administrative expenses incurred by the client could be reimbursed on an agreed basis.