People’s Insurance reported strong growth across both motor and non motor insurance during the first half of 2026.
Total Gross Written Premium reached Rs. 5.21 billion, compared with Rs. 3.75 billion a year earlier.
GWP is an industry measure of the total premiums written by an insurer before certain deductions. For a consumer, it should not be confused with profit. It is primarily useful here because it shows how much insurance business the company is writing.
Motor insurance remained by far the company’s largest segment, generating approximately Rs. 4.05 billion in GWP during the six month period, up from Rs. 2.91 billion in the first half of 2025.
That represents growth of around 39%.
The company’s non motor business also expanded strongly, with GWP increasing by approximately 37% to Rs. 1.16 billion.
According to the company’s figures, its overall premium growth exceeded the growth recorded across Sri Lanka’s general insurance sector during the period.
Profitability also improved.
Profit before tax rose from Rs. 321.6 million to Rs. 525.6 million, while profit after tax increased from Rs. 221.6 million to approximately Rs. 357.3 million.
There was another figure worth noting.
The company’s underwriting loss narrowed from approximately Rs. 231.9 million to Rs. 92.4 million.
That is significant because an insurer can generate income not only from writing insurance policies but also from investing the funds it holds. Looking at premium growth or overall profit alone therefore does not provide a complete picture of how profitably the underlying insurance business is being written.
People’s Insurance also reported shareholders’ equity of approximately Rs. 6.33 billion at the end of June 2026, while Fitch Ratings reaffirmed its A(lka) National Insurer Financial Strength Rating with a Stable Outlook.
These are substantial improvements at company level. But for an expat choosing an insurance policy, they are context rather than a recommendation.
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What does this mean for foreigners?
Sri Lanka’s insurance market is becoming more important for foreign residents
The immediate story is about People’s Insurance. The broader story is the continuing development of Sri Lanka’s insurance industry.
According to the Insurance Regulatory Commission of Sri Lanka, total insurance industry GWP reached approximately Rs. 322 billion in 2024, compared with Rs. 208 billion in 2020. General insurance GWP increased from approximately Rs. 105 billion to Rs. 138 billion over the same period.
That growth took place despite an unusually difficult economic environment.
Sri Lanka experienced the pandemic, severe foreign exchange shortages, the 2022 economic crisis, high inflation and restrictions on vehicle imports. Yet the insurance sector continued operating and subsequently returned to growth.
For foreigners building a life or investing in Sri Lanka, a deeper and more competitive insurance market is generally positive. It provides more choice and potentially encourages insurers to compete on products, distribution and service.
But more choice also makes comparison more important.
Insurance products that appear similar at first glance can differ considerably once exclusions, limits, excesses and claims procedures are examined.
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Motor insurance remains a major part of the market
The composition of People’s Insurance’s business is revealing.
Approximately Rs. 4.05 billion of its Rs. 5.21 billion in first half GWP came from motor insurance.
This reflects the importance of vehicle cover within Sri Lanka’s general insurance market.
For expats driving in Sri Lanka, the distinction between basic third party insurance and comprehensive cover is particularly important.
The cheapest policy may satisfy a legal requirement but provide very limited protection for your own vehicle.
Comprehensive policies can provide much wider protection, but the wording still matters. Foreign residents should check what is covered in relation to accidental damage, theft, natural events, third party liability and additional benefits rather than assuming all comprehensive policies are equivalent.
The excess payable on a claim also deserves attention.
A cheaper annual premium can become considerably less attractive if the policyholder has to absorb a large proportion of the cost when something goes wrong.
Property insurance deserves more attention from foreign owners
This is where the insurance story becomes particularly relevant to ExpatsLanka readers.
Foreign interest in Sri Lankan property has increased, particularly in Colombo and tourism areas along the southern coast.
Yet insurance is sometimes treated as an administrative detail after a property has been purchased rather than part of the original investment assessment.
That is a mistake.
A foreign owned villa, apartment or rental property can face risks ranging from fire and storm damage to flooding, electrical damage, theft and public liability.
The appropriate cover will depend heavily on the property and how it is being used.
A house occupied privately by its owner is not necessarily the same insurance risk as a villa being rented to international guests throughout the year.
If a property is used commercially, owners should make sure the insurer understands that use. Assuming that an ordinary domestic policy automatically covers short term holiday rentals can create serious problems when a claim is made.
Foreign property owners should also distinguish between building insurance and contents insurance.
For apartments, it is particularly important to establish what the management company or condominium policy covers and what remains the individual owner’s responsibility.
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Holiday rentals create additional risks
The growth of villas and short term accommodation in areas such as Galle, Ahangama, Weligama and Mirissa makes this increasingly relevant.
Once paying guests enter a property, the risk profile changes.
Owners need to think beyond damage to the building itself.
What happens if a guest is injured at the property?
Is the swimming pool included within the relevant cover?
What about employees working at the villa?
Does the policy cover loss or damage caused by guests?
Are high value appliances, furniture or equipment adequately insured?
Would the policy respond if the property could not be rented for a period following serious insured damage?
These questions should be answered before a policy is purchased, not after an incident.
The central issue is not simply whether a property is “insured”. It is whether the policy reflects how that property is actually being used.
Business owners need a different conversation
Foreigners operating businesses in Sri Lanka should approach insurance from a commercial perspective.
A café, boutique hotel, surf business, restaurant, office or property management company has different risks from a private residence.
Depending on the business, relevant protection may include cover for buildings, equipment, stock, vehicles and various liabilities.
Employers also need to understand their obligations towards staff rather than assuming a standard commercial policy covers every employment related risk.
This is one area where using a properly registered insurance broker can be useful, particularly when several types of cover need to work together.
Sri Lanka’s Insurance Regulatory Commission maintains information on registered insurance brokers, which provides a useful starting point when checking whether an intermediary is authorised.
Strong company results do not automatically mean the best policy
This distinction is particularly important.
People’s Insurance’s first half results are financially positive. Premium income is growing, profitability has improved and its underwriting loss has narrowed.
None of those figures tells an individual expat whether a particular People’s Insurance policy is better than a policy offered by another insurer.
Company strength matters because an insurer must be financially capable of meeting its obligations.
But consumers should also examine the policy itself.
Price matters.
So do exclusions, claim limits, excesses, customer service, documentation requirements, repair arrangements and the practical experience of making a claim.
It is important to check which regulated insurer offers the appropriate cover for my particular risk, on terms I understand and at a price that represents reasonable value?
Does this affect the cost of living?
There is no direct reason to expect People’s Insurance’s financial results to change the everyday cost of living for expats.
However, insurance premiums are themselves part of household and business costs, particularly for vehicle owners, property investors and businesses.
Premiums can change as insurers reassess claims costs, vehicle values, construction costs, medical expenses and other risks.
Foreign residents should therefore avoid assuming that the price paid last year will necessarily remain a useful benchmark when renewing a policy.
The cheapest renewal is not automatically the best one either.
If asset values have increased but the insured value has not been updated, a policyholder could discover after a loss that the level of cover is inadequate.
Frequently Asked Questions
What is People’s Insurance Sri Lanka?
People’s Insurance PLC is a Sri Lankan general insurer providing motor and non motor insurance. It reported Rs. 5.21 billion in Gross Written Premium during the first half of 2026.
Is People’s Insurance a good choice for expats in Sri Lanka?
Its latest financial results show strong business growth and improved profitability, but financial performance alone is not enough to determine whether a particular policy is suitable. Expats should compare coverage, exclusions, excesses, claims procedures and price across appropriate regulated providers.
Do foreigners need car insurance in Sri Lanka?
Anyone owning or operating a vehicle in Sri Lanka needs to comply with Sri Lankan motor insurance requirements. Foreign drivers should check both the legal minimum and whether they require broader comprehensive protection.
Can foreigners insure property in Sri Lanka?
Foreign owned property can be insured, but the appropriate structure depends on the property, ownership arrangement and use. Owners of rental villas and commercially operated properties should ensure that the insurer has been told how the property is being used.
Does home insurance cover Airbnb or holiday rentals in Sri Lanka?
It should never be assumed that a standard domestic policy automatically covers commercial short term letting. Owners should disclose rental use and obtain written confirmation of the protection provided.
Who regulates insurance companies in Sri Lanka?
Sri Lanka’s insurance industry is regulated by the Insurance Regulatory Commission of Sri Lanka (IRCSL). The Commission publishes information on the industry, regulation and registered insurance intermediaries.
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