Insurance is more than a financial safety net, it is a tool for resilience, financial planning, and societal stability. In Sri Lanka where the economy has faced multiple shocks in recent years, the insurance sector is increasingly critical for protecting, individuals, families, and businesses. LOLC Life Assurance and LOLC General Insurance lead this space, leveraging technology, innovation, and a community-focused approach to expand their reach and impact.
Echelon sat down with Chandana L. Aluthgama, Executive Director and Principal Officer of LOLC Life Assurance and Director of LOLC General Insurance, to explore the company’s growth trajectory, sector insights, and future strategy.
Sri Lanka’s insurance market is undergoing notable shifts. How do you view the current outlook for Life and General Insurance, and what macro trends are influencing the sector’s evolution?
Since 2019, Sri Lanka’s insurance industry has remained dynamic, demonstrating resilience amid economic volatility. In the Life Insurance segment, we recorded growth of around 12% in 2023 and 20% in 2024, while the General Insurance sector expanded by 2% in 2023 and nearly 11% in 2024. That said, the industry continues to face headwinds from rising vehicle repair and medical costs, as well as limited new project activity. Though the recent reopening of the vehicle market has provided positive momentum, particularly for motor insurance, overall penetration remains relatively low, with Life Insurance at 0.6% and General Insurance at 0.4% of GDP, reflecting cultural reliance on family support and low insurance literacy, which trails the national financial literacy rate of 57.8%. Looking ahead, I believe the younger, more self-reliant generations will play a key role in reshaping the landscape. As digital adoption accelerates and awareness grows, these demographic shifts are likely to drive deeper market penetration and more diversified product uptake across both Insurance segments.
How have recent economic challenges shaped consumer behaviour around protection and risk, and how has LOLC Life and General Insurance adapted operationally and strategically?
From the feedback we receive from our teams and the growth trends we observe, it’s clear that consumer attitudes toward protection are evolving. The steady growth in both Life and General Insurance indicates that people increasingly recognize the importance of insurance despite economic uncertainty. For generations, Sri Lankans relied on family, neighbours, and communities for support during times of need. However today, smaller family units, rising living costs, and urban migration are reshaping these traditional support systems. While adoption has historically been gradual, greater awareness and the availability of innovative, affordable solutions are helping more Sri Lankans embrace the value of long-term protection and proactive risk management. At LOLC Insurance, we have aligned our focus on medical, whole life, and education-linked policies under life insurance that provide long-term security and value while delivering personalized individual and corporate risk management solutions under general insurance to address real needs and shifting priorities. To unlock the sector’s full potential, we continue to innovate around affordability, accessibility, and relevance. Operationally, we have strengthened our distribution channels, invested in digital enablement, and leveraged insights from our ground teams to better understand and serve customers, enhancing reach, responsiveness, and customer experience, ensuring that our products remain relevant in a rapidly changing environment.
As two of Sri Lanka’s fastest-growing insurance companies, LOLC Insurance continues to introduce transformative solutions that address emerging challenges. What factors have enabled this growth, and how are you strengthening your role as a trusted partner during uncertain times?
LOLC Insurance’s success is underpinned by the strength of the wider LOLC Group, which operates across 27 countries with a workforce of over 55,000. This strong foundation has enabled LOLC Life and General Insurance to grow rapidly over the past decade, supported by cross-sector synergies and deep brand trust. Our focus on technology and innovation has further accelerated this progress. We are developing digital platforms and exploring AI-driven solutions to simplify policy language, making insurance more accessible, transparent, and user-friendly. Backed by a dynamic team and the Group’s legacy, we continue to strengthen our position as a trusted, customer-focused insurer, equipped to serve evolving needs and provide stability during uncertain times.
As technology, regulation, and customer expectations evolve, which strategic areas will you prioritise to enhance innovation, accessibility, and service excellence across the insurance value chain?
Regulatory compliance remains a top priority for us, especially with upcoming changes such as IFRS 17, for which both our Life and General insurance teams are already well-prepared. In parallel, we are developing a comprehensive corporate strategy that balances short-term responsiveness with long-term vision. Trust and transparency will continue to define our customer relationships, strengthened by robust systems and procedures. As customer expectations evolve, we aim to design a hybrid model that serves both traditional and next-generation clients, leveraging technology to enhance accessibility, while preserving the human connection that underpins confidence and long-term loyalty in the insurance experience.
In your view, what does ‘excellence’ mean within an organization, and how can that mindset be embedded across all levels of the company to drive culture, performance, and customer trust?
To me, excellence starts with purpose. At LOLC Insurance, our purpose is to empower people and unlock the nation’s potential. Every part of the value chain must perform at its best, as one weak link can compromise outcomes. I focus on two critical factors: person-organization fit, aligning motivation, skills, and loyalty with company goals; and technology-organization fit, ensuring systems serve users effectively. When both align, we achieve operational excellence that not only drives performance but also builds customer trust, satisfaction, and loyalty while embedding an excellence-driven mindset across all levels of the organization, shaping culture and sustaining long-term success.
Companies have a license from a regulator to operate, but they also have a social license. They must ensure that the general well-being of Sri Lanka is also in their mandate. How does LOLC Life and General Insurance incorporate that into their business?
When I first joined the group, I was impressed by our CSR initiatives. For instance, the group invested Rs. 2.5 billion to provide schoolbooks and other essentials to over 40% of the entire school system across the country, which is thus far the largest and most remarkable humanitarian effort by a corporate in Sri Lanka, supporting education and social development. While the government now provides support in some areas, LOLC has consistently been at the forefront of such initiatives. Beyond CSR, our core insurance business also serves the nation by fostering insurance literacy. We empower people to manage risks independently, helping them face unexpected medical or financial challenges with confidence. In doing so, we enhance broader national well-being and resilience, aligning our social impact with our business mandate.
As a leader, how do you envision shaping the long-term direction of LOLC’s insurance portfolio, and what strategic decisions will you prioritize to ensure the company stands out in a competitive industry?
Firstly, I deeply admire what the LOLC Insurance companies have achieved in just over 10 years, thanks to the dedication of those who have built the foundation before us, as well as the commitment of our present staff who continue to drive excellence every day. As we move into the next phase of growth, we are focusing on greater organization, guided by a clear and agile corporate plan to meet evolving market demands. My priorities include leveraging our presence in community pockets, developing the next generation of leaders through targeted HR and training initiatives, and advancing our digital journey by integrating AI with human insight. We are also exploring opportunities to optimize and expand our insurance business overseas, while prioritizing short-term clarity and execution to ensure sustainable growth.