Over the past twenty years, the importance of the service industries to the world economy has grown tremendously. Greater competition has also put pressure on life assures, who face a steady rise in policy lapses. Customers are cancelling their policies as they struggle to survive the down turn in investment and credit markets. Very little publications with specific reference to the long-term insurance industry in Sri Lanka exists, that focuses on Customer Relationship Management and Customer Loyalty. The study investigates Customer Relationship Management and its influence on Customer Loyalty at long-term insurance industry in Sri Lanka with special reference to the AIA Insurance Lanka.