Presented By : N . PRASHA

What is insurance?

Why we need insurance?

Evolution of insurance in World context.

Evolution insurance in Sri Lankan context.

Current role of insurance.

Insurance is a form of contract between two parties

whereby one party (insurer) agrees to compensate

the other party (insured) against a loss (may occur

or may not occur) over a payment of consideration

(premium) .

Insurance provide security.

Insurance reduces risk or loss.

Insurance provide peace of mind.

Life insurance encourage savings.

Insurance accelerate the economic growth of the country.

In 1750 BC the first form of insurance recorded by Babylonians &

Chinese Traders . The First document of insurance is Code of

Hammurabi .

Around 600 BC Greek &Phoenicians used insurance for their seaborne

commerce & at similar time Romans formed the first type of life &

health insurance .

In 14th century the first documented insurance policy came in Genoa.

The first insurance company was formed in 1688 in London named

Lloyd’s London

Insurance developed rapidly with the growth of British commerce in the

17th & 18th century.

1666 Great Fire of London. Shortly thereafter, Nicholas Barbon opens

the first fire insurance office in England. It eventually becomes The

Phoenix Assurance Company. Over the next two decades, more fire

insurance companies start up.

1574 Queen Elizabeth I grants to Richard Candler the right to establish

an insurance office in the Royal Exchange Building for the preparation

and registration of policies.

1601 Britain’s Parliament enacts the Assurances Act of 1601 creating

an assurance commission for resolving policy disputes.

Pre – 1961

Insurance business in Sri Lanka commenced with the advent of the coffee &

tea industry during the period of British rule.

A number of representative offices of foreign insurance companies were in

operations.

In the early part of 20th century , life insurance companies too were

established.(e.g. New India assurance, Sun life Insurance, Royal assurance

Ltd,Pearl assurance etc.)

In 1961

The Industry was nationalized. The government took over the operations of the

then- existed companies Ceylon Insurance company Ltd was setup as the only

supplier of insurance.

In 1986

Setting-up of National Insurance Corporation creating a government controlled oligopoly.

In 1987

Insurance sector was opened for the private sector.

In 2001-2003

Privatization of National Insurance Corporation (2000/2002) & Insurance Corporation in Sri Lanka.

Today many insurance companies are in insurance industry (e.g.World-

Allianz,AXA,China life insurance, Srilanka-AIA,Amana Takaful,etc.) . & they

provide various insurances. And also today insurance plays a significant role in term

of human life, properties & business scenario. This role can be summarized as

follows.

Pooling the anticipate losses.

Transferring risk to insures.

Providing monitory benefits if the risk occur.

Immediate recovery from losses.

Insured is restored to his or her previous financial position before to the occur of

the loss.