📈 Motor Insurance Shifts to Cash-Before-Cover Model from May 1

The Insurance Association of Sri Lanka (IASL) has announced a significant tightening of credit practices within the motor insurance sector to align with global standards and enhance industry discipline. • New Credit Guidelines: Starting 1 May 2026, the current credit window of 90 days will be reduced to a maximum of 30 days. • Phased Implementation: The industry aims to eventually phase out credit entirely, moving toward a strict "cash-before-cover" model typical of developed markets. • Strategic Objectives: The move is designed to improve operational standards and financial discipline alongside the sector's ongoing digitalisation push. • Industry Context: IASL President Lasitha Wimalaratne noted that the shift brings the local insurance industry in line with international best practices, ensuring better liquidity and risk management. _Source: Industry announcement based on provisional guidelines._