Victor Colombage celebrates 50 years of unbroken service

Asian Alliance Insurance Plc (AAI) celebrates yet another iconic moment of having the privilege of the services of Victor Colombage - Chartered Insurer, Deputy General Manager ( Non Life), who has reached the “50 not out” mark in the insurance industry, with an unbroken innings!

Reflecting on his 50 years within the industry Colombage said, “When I joined this industry, throughout the pre nationalisation era, state monopoly, and post nationalisation era, whatever the changes and developments that we went through; the one thing that remained constant was underwriting discipline!”  

Insurance premium rates were charged after proper evaluation of the risk. Premium rebates were appropriately granted for features (precautions taken) by the insured to mitigate risk, and the basic premium was loaded for extra hazards. Each peril carried its own premium rating, which was duly loaded to the basic rate of the particular class of risk, be it property (fire), marine, motor or miscellaneous (surgical, accident etc). This was really professional underwriting – what was learned from the text book was put into practice!

 “It is sad to note that the rates charged for all classes of General Insurance risks are deteriorating rapidly, and there seems to be no consolidated efforts by organised bodies functioning within the industry, to put a check on this situation. This state of affairs is pronounced, when comparing Riot rates, where the Basic premiums are much lower than the Riot premium, which is in fact a secondary risk in comparison to the main risk (Basic risk), such as fire for example!”  The market lacks common underwriting patterns and claims settling standards. Victor stresses that “these are not healthy signs for the growth of an industry. Such adverse rating structures and claims settling procedures are not practiced in other Asian markets.”

“One other situation I would like to comment on is the State insurance business, being underwritten solely by the State owned, Sri Lanka Insurance Corporation”. Victor opines that this practice is not ethical as the word ‘State’ means common property of all citizens of Sri Lanka. “Even in Saudi Arabia where I worked for a considerable period of time, the Kingdoms’ insurance requirements are handled by the state owned National Company for Corporate Insurance (NCCI), which is a semi government organisation. Whilst the NCCI retains a substantial percentage of the State’s business, say 45% to 55%, the balance of the Kingdom’s risks is spread among the other non government insurance companies that function within the Kingdom through co insurance, with the state sector. This practice, I feel, will even out unhealthy competition, unethical practices of undue influence, and most importantly, retain foreign exchange within the country, by saving on reinsurance premium outgo”.       

Looking forward Victor is optimistic that the changes and developments of the regulatory landscape that will be introduced shortly through the recent amendments to the Regulation of the Insurance Industry Act will bring about more focus and discipline to the industry.

Joining the Industry as a young acolyte at Colombo Assurance as a Junior Underwriter in 1961 just prior to the nationalisation of the Industry in 1962 he rose rapidly among the rank and file of the Insurance Corporation, leading an illustrious career, which culminated as Manager - Miscellaneous Accident Insurance dept.

Venturing overseas, Victor worked at the state owned NCCI, in the Kingdom of Saudi Arabia.  Due to his pragmatic approach and wealth of experience, he progressed in his illustrious career, matching wits and working amongst many hardnosed expats.   

Being the patriotic citizen that he is, he returned to our shores to contribute his knowledge and experience to the growth of the insurance industry. His exposure and training which includes a course conducted by the UNCTAD/ UNDP, on “General Insurance and Insurance Management” has more than proved his worth, within an industry that is in continuous search for qualified insurance personnel.   

Asian Alliance is privileged to have two Golden Jubilee celebrants in its senior management team. Siri Jayasinghe, General Manager - Life who continues to serve the Company, is in his 53rd year of unbroken service to the Industry.

“People of today’s benchmark, producing results of tomorrow’s standard” as a spokesperson of Asian Alliance averred is built up on the experience and expertise of iconic individuals such as Victor and Siri.

Asian Alliance wishes both Victor and Siri many more years of a rewarding career, and look forward to their contribution to both the Company as well as to the industry, particularly in nurturing and mentoring aspiring young insurance professionals in the years to come.