Colombo to host Insurance Congress of developing countries in Sept.

Wednesday, 14 August 2013 00:15 - - {{hitsCtrl.values.hits}}

18 member countries confirmed with 400 delegates expected

By David Ebert The Insurance Association of Sri Lanka (IASL) recently announced its hosting of the 17th AIRDC Insurance Congress of Developing Countries conference for the first time in Sri Lanka, which will see 400 delegates representing insurers and reinsurers from 18 countries present to deliberate on and share their individual industry experiences from their respective regions.

The congress will be held in Colombo from 29 September to 2 October with a host of guest speakers lined up to discuss industry challenges under the theme, ‘Enhancing Insurance Penetration in Emerging Economies’. Invaluable experience and knowledge sharing is to be expected with many thought leaders and industry practitioners sharing their experiences at the event. This follows ICDC Organising Committee Chairman Dr. Jagath Alwis taking up the Presidency of the AIRDC for 2013. The congress is expected to provide a platform for all participants to enhance their knowledge of the current and future trends of the insurance industry and serve as a platform for high level discussions and networking among industry colleagues. IASL President and Janashakthi Managing Director Prakash Schaffter addressing the press briefing referred to a Fitch Ratings report that revealed the comparatively low insurance penetration in Asia, even though the region accounts for a significant part of both the world’s population and economy. The conference, Schaffter stated, will provide the ideal forum for a collective brainstorming session on how these issues can be addressed effectively. “The main objective of the AIRDC is to foster strengthen the insurance industry in developing countries and to foster regional cooperation. The theme of the conference is ‘Enhancing Insurance Penetration in Emerging Economies’. It is appropriate to Sri Lanka and also Asia in general. Asia is a happening place in the world today and it consists of almost 60% of the world’s population and accounts for 33% of the world’s GDP. Looking at it from an insurance penetration perspective it accounts for only 5.73% of the regions GDP. Comparatively, the UK stands at just over 11% while the US stands at just over 8%. “Talking about Sri Lanka however, our insurance penetration as a percentage of GDP stands at a mere 1.2%. The state, the regulators and the industry have been discussing this matter and are looking at ways and means at how we can increase this current rate of penetration. This conference will hopefully enable us to get a better understanding of the issues involved and show us a way forward and enable us to overcome any barriers that we have encountered in the past.” Three of the most populated emerging markets in Asia; China, India and Indonesia, have relatively low penetration rates (from 4% to 8%). These markets, with rising household income and rapid industrialisation, are home to 69% of the Asian population. Reinsurance coverage in Asia remains small still compared with global reinsurance premiums, according to industry projections and the International Association of Insurance Supervisors. ICDC Organising Committee Chairman and AIRDC President Dr. Jagath Alwis in his speech said: “There have been 16 congresses starting from 1977 in most of the countries such as China, Argentina, India and Sri Lanka has never got an opportunity in the past but this year we have an excellent opportunity to host this congress in Sri Lanka and I would like to thank all my colleagues in the Insurance Association for their support in coming forward and deciding to host this great event in Sri Lanka and for their time in the various committees.” The congress is sponsored by the Sri Lanka Convention Bureau, Sri Lanka Tourism and SriLankan Airlines.