Taking insurance in Sri Lanka to the next level

IASL President Deepthi Lokuarachchi (left) and MSF Chairman Hashra Weerawardena

On 1 September, the insurance industry of Sri Lanka celebrated National Insurance Day and the beginning of an entire month dedicated to insurance awareness. Insurance Association of Sri Lanka President Deepthi Lokuarachchi and Marketing and Sales Forum (MSF) Chairman HashraWeerawardena shared their knowledge on several aspects of the industry as well as the Insurance Awareness Month campaign

Q: What kind of developments have the declaration of National Insurance Day and the Insurance Awareness Month campaigns brought about?

Lokuarachchi: The whole objective of having a dedicated day is to promote insurance and create awareness among the general public about the importance of insurance. Last year the Cabinet of Ministers proclaimed 1 September as National Insurance Day and this year we commemorated the event for the second time. However, prior to 2017 we have been carrying out the Insurance Awareness Month campaign during the month of September.

In the last five years we have seen a growth in this respect, thanks to our increased activity level. All the insurance companies have recorded high turnovers in the month of September.The IASL has also introduced a series of competitions to coincide with insurance month. One of the criteria of the competition is that professionals will be recognised and rewarded if they actually achieve a long level of persistence, which is the continuation of the policies. It’s not merely about the sale but the continuity of the policy.According to the reports we have at the moment, there has been a high level of increase in the activities of all companies in the month of September, particularly in the life sector. 

Q: Can you describe the inception of the IASL and its role in the development of the insurance industry of Sri Lanka?

Lokuarachchi: The IASL started long years back in 1989 with four companies as its members –CeylincoInsurance, SLIC, Eagle Insurance and Union Assurance. It has now expanded to 26 companies. The IASL serves as a trade body in the insurance industry. The organisation’s primary purpose lies in promoting insurance.We also resolve complex issues that our members face, which cannot be resolved in isolation. The IASL steps into liaise and coordinate with government bodies or private organisations and resolve collective industry-related issues, when such disputes are beyond the mandate of those companies. 

Q: What post-event results does the IASL hope to see following the conclusion of this year’s Insurance Awareness Month campaign?

Lokuarachchi: It’s a very tight market condition with stiff competition. All the companies are trying to maintain a steady level of growth. So I think if a company can achieve at least five to six notches above their pre-determined rates of growththat would be an extremely positive outcome of this year’s campaign. 

Q: What are the most significant challenges the insurance industry is currently facing?

Lokuarachchi: In my opinion, the main challenge we face is the prioritisation of the people. The necessity of insurance is displaced by various other needs and wants. In the case of many people insurance occupies a very low place on their list of priorities. So the message we want to send out is that insurance should be one of the highest priorities of any person. Living in an Asian culture we are deeply involved in the well-beings of our immediate families so therefore it’s important that people pay attention to it and provide for their future through insurance. 

Q: In your opinion, what steps must insurance companies take in order to maintain customer interest?

Lokuarachchi: Today we witness an ageing society. If you look at the demographics of the country, there is a fairly large population of young children and at the same time we also see an ageing population. Life expectancy has increased to 72. People are now looking for living benefits in the form of health insurance, annuities and pensions, so as to have some amount of money that they can use in retirement. We also see that with improved literacy and safety facilities the number of early deaths have reduced. The companies should gear up and give people affordable products and also provide them with a mechanism that saves as well as protects. 

On the other hand, I also think that insurance companies should provide health care benefits because I think healthcare facilities have become very expensive in the private sector and the facilities in the Government sector cause a number of inconveniences, such as long queues. Health factors cannot be put on hold, they need to be attended to.

Q: What is the role of the MSF in the IASL?

Weerawardena: The Insurance Association of Sri Lanka is an institution made up of 26 General and Life Insurance companies. The association comprises of a number of sub-committees, each with its own purpose and agenda. The Marketing and Sales Forum (MSF) takes up a prominent place amongst its fellow sub-committees. The purpose of the MSF is to support the IASL in its task to create awareness about the importance of insurance. The MSF does this by organising various events to propagate and promote insurance. The sub-committee is made up of the Heads of Marketing and Sales from the insurance companies that are part of the IASL.

Q: Can you describe the efforts of the MSF in organising the National Insurance Day activities as well as the Insurance Awareness Month campaign?

Weerawardena:As the sub-committee dedicated to creating awareness about the value of Insurance, the MSF played a leading role in the organisation of the National Insurance Day activations and the Insurance Awareness Month campaign. The activation events were planned with the aim of ensuring that as many people as possible in every corner of Sri Lanka were educated about the vitality and necessity of insurance. As the Chairman of the MSF, I take great pride in the tireless efforts of my team. I am also grateful to the IASL and the IRCSL for all the support and guidance we received.

Q: Can you describe the activations that took place in the seven allocated locations on 1September?

Weerawardena: A number of insurance companies took on the responsibility of hosting activation events in Colombo, Kandy, Kurunegala, Jaffna, Ratnapura, Anuradhapura and Matara. All other insurance companies also pitched in with their support and presence to ensure that the activation events were successful. It was a proud moment for us to see the entire insurance community of Sri Lanka come together to take the message of our trade to every corner of the island. 

Q: How have the insurance companies of Sri Lanka contributed to the campaign?

Weerawardena: Even though leadership was taken on by certain companies in selecting the venues, program, etc., the entire industry rallied around them as one to espouse the importance of insurance to the entire population of Sri Lanka, and as a result of this effort all the regional activations held so far have been a tremendous success. 

Q: What are the plans forfuture National Insurance Days and the Insurance Awareness Month campaigns?

Weerawardena:The declaration of the National Insurance Day was the first step in a three-year plan to increase the reach of insurance awareness throughout the country. This year we conducted activation events in seven major locations in the country, six of which were well outside Colombo. Next year we hope to be able to conduct events all over the island.