Insurance industry in fast mode to create value to emerging needs of modern consumer

The Insurance Association of Sri Lanka (IASL) commemorates ‘Insurance Month’ in September every year along with the enthusiastic participation of its member companies. 1 September was declared as National Insurance Day by the Government of Sri Lanka in 2017. Commencing this year’s Insurance Month from 1 September, IASL will drive its awareness campaign under the theme ‘Staying aware is staying protected’, to stress the importance of insurance protection as an essential safety net in the event of unprecedented crises as was experienced during the pandemic and the economic crisis. 

Health, education and retirement plans are topping the priority list of today’s consumer needs. In the backdrop of rising inflation, taxes and medical expenses the insurance industry is geared to cater to the emerging needs of the customers. It would be right to say that the insurance industry was one of the first industries that embraced digital transformation at a quick pace. The industry is continuously investing in product innovations to ensure customer needs are met. The industry is also heavily investing in data and research to identify customer behaviours to develop tailor made insurance solutions. Digitalisation, including artificial intelligence, machine learning, and automation are driving ‘Insure-tech’ as the industry moves strongly towards digital products and processes. Furthermore, priority is given for customer convenience by increasing customer touch points physically and digitally. Online payment gateways, 0% interest easy payment schemes, customer apps, simplified customer on boarding, and streamlined underwriting and claim processes on digital platforms are introduced to cater to the today’s digital customer. 

As a highly regulated industry, customers are assured of their investments and protection from their insurance providers. The industry together with the regulator has introduced the ombudsman service for customers and the insurance companies to raise their grievances. The insurance industry also plays an important role in creating job opportunities and empowering people of this country. The industry currently employees over 63,000 persons which indirectly benefits 63,000 families. 

The industry is committed to adopt to new trends and best practices of the global insurance industry. Latest being the IFRS17 (International Financial Reporting Standard) which is an accounting standard that will fundamentally change the financial reporting of the industry. The Sri Lanka Insurance industry will go live with this system in January 2025.

As the apex body of the insurance industry in Sri Lanka, IASL harnesses all its resources to champion the significance of insurance amongst the general public across many communication platforms, including electronic, print, digital and social media. The insurance industry fields a vast sales force which also promotes insurance amongst the general public. Insurance advisors representing all insurance companies will be carrying out special awareness programs across the island to create awareness on the importance of being insured during the month of September.

Commenting on the Insurance Month in September, Insurance Regulatory Commission of Sri Lanka Chairman Razik Zarook P.C says: “In response to changing market conditions and emerging technologies, the insurers will need to adopt transparent, consumer-centric practices, ultimately fostering trust, and offer innovative and flexible products that meet the evolving needs of consumers.” 

“In the face of the unprecedented challenges encountered in recent times, the insurance industry has demonstrated its unwavering commitment to serve society with resilience, empathy, and innovation. Today, the insurance industry is meeting the emerging needs of the population by keeping in mind the evolving economic situation. Whether it was the devastating impacts of economic instability, natural disasters, a global pandemic that affected us all, or the ever-evolving risks in the digital landscape, the insurance industry has displayed remarkable adaptability”, says Insurance Regulatory Commission of Sri Lanka Director General Damayanthi Fernando. 

Insurance Association of Sri Lanka President Chandana L. Aluthgama firmly believes that awareness on the importance of insurance among the general public is key for people to identify insurance as a priority. “We believe that every citizen in this country needs to be insured and we work tirelessly to make it a reality as individual companies and as an industry,” he says.

“Whilst we firmly believe that ‘Insurance for All’ should be a mandate to safeguard the people of the country, we also see the Insurance industry being a catalyst in creating job opportunities and empowering the people of the country,” says Insurance Association of Sri Lanka Marketing and Sales Forum Chairperson Namalee A. Silva. 

This year’s ‘Insurance Month’ has drawn up an exciting events calendar and IASL invites the general public to use this month to gain more knowledge about how insurance can secure their financial future and peace of mind.