The importance of insurance in a post-pandemic Sri Lanka

• A wake-up call

While the country seems to gradually awaken from the disheartening slumber of the pandemic, the insurance industry of Sri Lanka has been working overtime to communicate the importance of  insurance to the general public. Insurance Association of Sri Lanka (IASL) 

Marketing and Sales Forum (MSF) Chairman Dinesh Yogaratnam discusses his perception of marketing insurance during a pandemic while showcasing the need to invest in the future of oneself and one’s 

dependents, ensuring preparation for whatever scenario. Following are excerpts:

Q: Please expand on how the Marketing and Sales Forum has had to adapt its role to suit the circumstances of this year. 

The Insurance Association of Sri Lanka (IASL) is the industry body comprising all the life and general insurance companies that operate in the market. The Marketing and Sales Forum (MSF) is a subcommittee thereof, which includes the leaders in sales and marketing of all the constituent companies and is tasked, as the name implies, to address matters pertaining to the sales and marketing of insurance products and services. Further, the MSF also carries out various initiatives to increase insurance penetration in the country through education and knowledge-sharing. 

One of the major efforts of the MSF this year is to help the public better appreciate what insurance is, whilst also helping them understand how, when, and why they should purchase a policy, so that they may provide themselves, their loved ones, their assets, as well as their enterprises with the financial protection required. 

 

Q:  What is your insight into the current insurance marketing conditions? 

The insurance industry, like almost all other industries, has faced many challenges with the onset of the pandemic, as well as being presented with certain opportunities. The insurance industry has grown in 2021 by around 10.6% in terms of Gross Written Premium as of the end of the second quarter; while long term insurance has seen significant growth, general insurance has contacted marginally. As an industry, we are confident that the growth trajectory we have witnessed in the first half will continue to the end of the year. 

With the pandemic impeding movement, insurers had to very quickly realign themselves to front the customer both for new business acquisition as well as for premium collection. To this end, all players deployed various digital assets and were quick to equip and recalibrate their sales teams to embrace this new hybrid model of interacting with and engaging the customer. 

From a servicing perspective; industry players have infused many digital interventions as part of their customer touchpoint strategy so that customers are able to seamlessly interact with them and obtain the services they require pertaining to their policies. On the customer’s side, the pandemic has made people appreciate the need for a meaningful health insurance plan and they have also begun to appreciate the need for long-term insurance. 

The Sri Lankan insurance industry has always stood by society not only during times of normalcy but more so during times of calamity and dire need. In this respect, the industry has come forward to pay COVID-related claims, irrespective of the fact that pandemics are excluded as part of insurance contracts. 

With the vaccination program being carried out in earnest, both locally and globally, and with more people being inoculated, things should, and will get back to a semblance of normalcy, albeit far from the normalcy we once knew. That being said, as society internalises and becomes more attuned and accustomed to what is now the ‘normal,’ new opportunities will arise, new avenues of value creation and income generation hitherto non-existent will emerge whilst businesses will recalibrate themselves to be in sync with these new market conditions.  

In this backdrop therefore we are very buoyant and optimistic about the future, bearing in mind at all times the need to be current and relevant to an evolving and dynamic customer whilst adding value to all our stakeholders.

Q:  What steps has MSF taken to promote insurance during the Insurance Month 2021 amidst the pandemic and in the absence of activation led promotions? Have the digitally-led activities been successful? 

In the past, the MSF used an array of on-ground activations coupled with a presence on selected radio stations to create awareness and share knowledge with the public. However, this year, with the present wave of the pandemic that we are grappling with, and movement being curtailed, the MSF has resorted to using mainly digital as well as print media for its insurance promotion activities. 

Employing a two-pronged approach, whereby, the MSF under the IASL banner is carrying various pieces of communications on social media channels and is working with the country’s print houses and their digital arms to disseminate information and educate the public, the individual companies too have been encouraged to promote their products and services, as well as to carry knowledge building pieces of communication on their own platforms. Through this, we are witnessing a heightened level of activity and dialogue pertaining to insurance across social media channels.  

Another major initiative that was carried out by the MSF during the Insurance Awareness Month was the Life Insurance Industry Sales Awards 2019 and 2020, which was held virtually on the National Insurance Day that was commemorated on the 1st of September. These awards celebrate the life insurance sales professionals in the industry and this initiative is the only national-level platform that recognises its best talent.  

Q:  What expectations do you have for this year’s insurance month sales and marketing activities? 

The activities that are being carried out this year too sits within the overarching objective that we have been pursuing over the years, which is to increase insurance penetration in the country by helping people to appreciate and understand its need.

A majority of Sri Lankans still overlook the possibility that calamities may strike; some recognising this risk, opt to rely on the support of the family as well as those near and dear to them. We hope that our efforts and endeavours will help ignite the realisation that one has a responsibility to oneself and dependents to provide a financial safety net that helps dreams become reality, no matter what.