Asian Alliance Insurance – Non-Life on expansion drive

Asian Alliance Insurance, in the journey towards being ‘the benchmark provider of quality financial solutions,’ has implemented aggressive plans to culminate this vision by 2016 with the strong financial backing of the parent company, Softlogic Group.

The company is projecting a bold new face to the market – bolstered by the doubling of its reinsurance capacity and its strategic plans of expanding operations, along with driving innovation in the hitherto lackluster medical insurance segment.

Significantly, AAI has stayed true to its promise of delivering inestimable value to its customers when diversifying its products.

Udeni Kiridena, General Manager – Non Life, AAI, said: “The latest innovative breakthrough by the Non Life Division has been the new medical policy offered to the public as ‘Asiri Alliance Medical,’ a unique health care insurance cover that will ease the burden of high medical and hospitalisation costs that may spring up even without a warning. Softlogic-owned Asiri Group hospitals will readily entertain patients covered under this scheme. This was the outcome of the joint synergies of AAI’s insurance expertise combined with Asiri’s superior medical and hospital facilities. The Asiri Group already operates five hospitals, with three in Colombo and two in Matara, all of which maintain high standards at reasonable charges to patients”.

This product was born out of the realisation of the need in Sri Lanka for a comprehensive and reliable health care insurance product that would have universal appeal. The joint group synergies of presence in health care and insurance has resulted in the conceptualisation of Asiri Alliance Medical, which provides a cover of total hospitalisation expenses including admission fees, room charges, investigations, medicines, treatment and surgery, and other expenses incurred on hospitalisation.

The cover under this policy is available to persons below 50 years of age and can be extended up to the age of 60. The annual hospitalisation benefit can go up to Rs. 75,000 while per event limit of benefits can reach Rs. 65,000. Additionally, policyholders will have the benefit of a free full blood report from any of the laboratories of Asiri Hospitals.

The company also offers higher value health insurance covers for those who seek larger coverage depending on their individual needs. “AAI is in an advantageous position to provide high value insurance covers at competitive rates for the simple reason that the Asiri Group of Hospitals that provide health benefits and AAI the insurer are both in the Softlogic Group,” said Kiridena.

As one of the most newsworthy developments in the insurance industry in 2011, AAI was propelled into the big league by having its reinsurance capacity doubled. “This giant leap in reinsurance capacity signifies the beginning of a new era at AAI and reflects the strong underwriting expertise which includes precise underwriting of risks at the right price. This enhancement also reflects the strong future potential that our reinsurance partners perceive in AAI.”

Maintaining the balance with reinsurers is always a challenge for insurance companies and in this regard AAI has not only sustained strong bonds with reinsurance partners, but also convinced them about its potential to grow over the next few years.

AAI continues to drive innovation in empowering underwriters to perfect their skills with tools such as Geo Mapping. This scheme maps the geographical history and likelihood of natural disasters in a particular zone in Sri Lanka, thereby enabling AAI technical staff to make the right call while insuring against floods, landslides and so on.

“The current international reinsurance market is in a state of relative turmoil due to the impact of the natural disasters in countries such as Australia, Thailand, Japan, New Zealand, Pakistan, etc. in recent months. International re-insurers monitor treaty performances of their partner insurers and review terms offered based on the impact when renewing treaty programs for the following year. Some restrict coverage for natural perils by way of an event limit or even exclude it altogether. Therefore, the decision of our reinsurance partners to strengthen the capacity has a direct bearing on the strong future they predict for Sri Lanka and for Asian Alliance Insurance as an insurance company. The reinsurance division is widely considered to be the heart of an insurance company’s General Insurance business. Our reinforced reinsurance capacity, in conjunction with our technically superior underwriting resources, has put AAI squarely on the path to prosperity,” concluded Kiridena.

The company has been undergoing a series of strategic changes and restructuring of its systems and processes, along with repositioning and adjustment of the sales and senior management structures in a bid to be better prepared to fulfill its ambitious objectives for the expansion of its Non Life footprint island wide.

Piyal Gunawardena, Assistant General Manager – National Distribution and Business Development (Non Life) said: “The company is further strengthening its retail channel by establishing presence in potential rich areas, through AAI Life branches, Non Life branches and strategic presence at Softlogic Finance branches. Meanwhile, we are also identifying geographical regions demonstrating strong economic growth as future locations for AAI’s Non Life expansion. The salient advantage in this strategy will be to expand customer reach by increasing the geographical reach.”

The company’s branch network too has undergone rapid expansion over the last few months. Asian Alliance Insurance Non Life Division is working towards establishing 35 branches including in the North and Eastern Provinces by end 2012. Further three branches will be established in areas where AAI had no presence previously, namely, Bandarawela, Hingurakoda and Trincomalee.

“We have witnessed 230% growth in revenues coming from our enhanced branched network within the first two months of the year. This expansion of branches is being supported by a massive recruitment drive, with 120 independent sales personnel being added recently. We envisage professional sales advisors to be placed at every branch to offer comprehensive guidance to customers. We are also in the process of developing strategic work site activities, sound business development skills and focused below-the-line activities,” added Gunawardena.

A series of these strategic approaches will ensure a business-ready sales force geared to canvas across the country to serve the non life insurance needs of the customers.