IRCSL Champions National Resilience at the 6th ICC Emerging Asia Insurance Conclave and Awards in Bangkok

The Insurance Regulatory Commission of Sri Lanka (IRCSL) represented Sri Lanka on the regional stage at the 6th Emerging Asia Insurance Conclave & Awards, organised by the Indian Chamber of Commerce (ICC) in Bangkok, Thailand.

The conclave served as a prominent platform for Asian regulators, policymakers, and industry leaders to address the region’s evolving risk landscape and strengthen cross border collaboration on insurance innovation, resilience, and sustainable sectoral development.

As the national regulatory authority, the IRCSL’s presence underscored Sri Lanka’s commitment to aligning with global regulatory standards while championing the country’s long term economic resilience.

Delivering a keynote address, Director General Damayanthi Fernando highlighted the strategic reforms underway to modernise the domestic insurance industry and position it as a stabilising pillar of the national economy.

During the address, she emphasised the urgent need to close Sri Lanka’s widening protection gap, noting that the recent impact of Cyclone Ditwah served as a critical stress test.

The event resulted in economic losses estimated at USD 4.1 billion, equivalent to nearly 4% of national GDP, while insurance coverage accounted for only 6% of total losses.

This disparity, she noted, reinforces the necessity of shifting insurance from a peripheral financial product to an essential instrument for national risk management, preventing climate driven shocks from cascading into household indebtedness or increased fiscal pressure on the State.

Reflecting on this systemic shift, the Director General stated:

“Our mandate has evolved significantly; we can no longer remain only supervisors of solvency.

As regulators, we must now serve as architects of resilience building trust, inclusion, and confidence in the insurance ecosystem.

Through our proposed Ten Year National Insurance Development Roadmap, we are committed to doubling insurance penetration by 2030 and positioning inclusivity as a national development priority.”

The IRCSL shared the progress of several critical reforms designed to strengthen market conduct, deepen customer trust, and enhance sector-wide integrity.

These include the introduction of a Customer Confidence Centric (3C) framework, the establishment of a dedicated Market Conduct Supervision Unit, and the rollout of a Policyholders’ Charter to ensure ethical sales, transparency, and fair treatment across all insurers.

Parallel to these behavioural and supervisory reforms, the Commission also prioritises underserved segments such as rural communities, informal workers, and small enterprises through accessible products like pure term life and personal accident covers.

Further demonstrating Sri Lanka’s forward looking regulatory stance, the IRCSL highlighted its ongoing drive towards digital transformation and international compliance.

The Commission reaffirmed its commitment to achieving full adoption of IFRS 17 by 2026, ensuring greater transparency and consistency in financial reporting.

Additionally, recently issued guidelines on digital insurance distribution via mobile networks aim to expand access to affordable protection for unbanked and vulnerable communities.

The IRCSL’s participation at the conclave reinforced Sri Lanka’s role as an active regional contributor to discussions on resilience, regulatory innovation, and inclusive insurance development.

By representing the country at this influential forum, the Regulator affirmed its dedication to building an insurance ecosystem that is robust, future ready, globally aligned, and capable of safeguarding all Sri Lankans amidst rising economic and climate related uncertainties.