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Tuesday, 29 July 2014 00:01 - - {{hitsCtrl.values.hits}}
Mergers and acquisitions will be one of the main stimulants of growth in the insurance segment with the impending splitting of different insurance segments as per new capital regulations, says General Manager of General Insurance Shani Ranasinghe.
The insurance segment is facing shrinkage due to a higher cost of living, however mergers and acquisitions are a fresh opportunities that Janashakthi is excited about, she said.
Although the split will bring about fresh challenges, Ranasinghe is confident that Janashakthi can face these issues with ease, adding that the split would also bring about more focus. The tightening of regulations will also bring about different ways of looking at solvency.
This is not the first challenging situation Ranasinghe has faced – she joined Janashakthi in 1995, when the company started its operations.
“At the time, there were only around five players in the insurance market. Most companies were cautious about underwriting the motor segment. Janashakthi however, jumped right into this segment from the start, including issuing of third party policies,” Ranasinghe recalled.
“We were the first to get involved in the motorcycle and three wheeler market which was not looked at too favourably by the other players. We tied up with David Pieris initially, opening up a special counter at their Madapatha factory,” she added.
It was a tough challenge to remain a key player in a market which now has 17 general players and is beset with competition and price wars – initially Janashakthi’s market share was around 12%.
Yet within 10 years Janashakthi was able to grow, placing themselves squarely among the top three players in the market surpassing others who had been there before the company started.
A contributory factor to this growth was the launch of its Full Option Centre, complete with around 500 staff, which improved their market share and volume tremendously.
“Today, we have 100 branches, our own auto centre and numerous assessment teams,” Ranasinghe said. “We have reach everywhere, particularly with our cutting-edge IT system. Our brand is known even in the most rural areas, particularly in the motor segment.”
The non motor segment too has been growing tremendously – Janashakthi has offered tailored policies in new and innovative areas. For instance, the company has provided pet insurance, and coverage for horses and even elephants. Recently, they also launched a revamped travel insurance product. In the motor segment, Janashakthi has consistently been a first mover with applications such as the Vehicle Locator.
The General Manager also recalled several significant acquisitions Janashakthi made, which cemented the company as a major player in the sector – Janashakthi acquired the National Insurance Corporation, which raised its status. The company’s bid for Sri Lanka Insurance also proved that the company had the clout to make a significant bid in a competitive segment.
Apart from this, Ranasinghe says Janashakthi has given her the support she needed to move forward in her career. “No other company encourages you to study the way that Janashakthi does. They provide support and encouragement, and student loans are available to those who need them. This spirit of encouraging learning has been inculcated in us so that we can pass it along to the juniors too.”
This is partly thanks to the leadership of both the current Managing Director Prakash Schaffter and the founder Chandra Schaffter, who have extensive experience in the insurance sector, and also hold Fellowship of the Chartered Insurance Institute (FCII) and Associateship of the Chartered Insurance Institute (ACII) qualifications, respectively. “Much of the company vision is thanks to our founder, Chandra Schaffter – he fostered a family culture and a true open door policy,” Ranasinghe added.
It is this family culture which prompted Ranasinghe to stick with Janashakthi, which will be celebrating 20 years in the industry. She sees many challenges ahead for the industry with new regulations coming into effect from 2015 but is confident that Janashakthi will be able to forge into the future stronger than before, with the help and support of its loyal staff of over 2,800.
