HNB Assurance records highest new business growth among top players in the market

Q: Are you satisfied with the growth rate of the insurance sector?

A: Last year was undeniably difficult for the market due to many uncertainties, set against a backdrop of the fiscal changes that were introduced, and the security situation in the country following the Easter Sunday bombings of hotels and places of worship.

Nevertheless, HNB Assurance (HNBA) and HNB General Insurance (HNBGI) surpassed last year’s market growth rates, achieving above 17 and 11 percent respectively, compared to the sector standard for life insurance (approximately 10%) and general insurance (about 5%).

Q: From a macro perspective, which factors would spur or hinder growth in the insurance sector, in your view?

A: Macro factors are pertinent to our business in two ways: they affect front end market challenges, which we have successfully overcome to achieve planned growth expectations; and impact investments entering capital markets.

Conducive macro factors create an enabling environment for sector development and growth. However, businesses did not enjoy this experience last year amid the decrease in disposable incomes, which reduced the demand for insurance. Moreover, with banks and similar financial services institutions curtailing credit, there was an apparent decline in demand for motor vehicle insurance, which forms a significant share of the general insurance market.

Insurance companies are major contributors to the investment market. At present, the company holds about Rs. 23 billion in funds under management, which we strategically leverage in the investment market to gain more returns. This in turn benefits shareholders and policyholders.

Usually, stock markets provide a good platform from which companies can launch growth and wealth acquisition plans. While the low performance of the stock market throughout 2019 failed to encourage us in this respect, we’re hopeful that we will be able to leverage on our capabilities in 2020 and the forthcoming years.

Q: What other challenges does HNBA expect to face in 2020?

A: There will be market challenges to contend with – especially in the political and economic environments as several national level elections are on the agenda for this year.

We believe that these events will result in proper political direction for the country. Furthermore, we anticipate that a stable government will be established, which is indispensable to economic prosperity.

Such conditions would undoubtedly benefit the company. However, our concern remains over the outcome of strategies to be laid out by the government in terms of monetary policy.

Moreover, the global impact of a potential slowdown of the Chinese economy in the wake of COVID-19, the US strengthening its position vis-a`-vis international trade and investments, and the potential impact and implications of Brexit remain to be fully known in the upcoming months. And this is likely to have a direct correlation with trade and investments both globally and locally.

Despite such challenges and uncertainties, HNBA and HNBGI will pursue accelerated and robust growth targets, which we are confident our teams will be able to achieve in 2020/21.

Q: How do you rate HNBA’s performance against other players in the insurance sector?

A: Our strategy revolves around achieving sustainable growth over the long term rather than the short term and we currently hold one of the highest gross written premium (GWP) growth rates among the top 10 life insurance companies.

In addition, when considering new business, HNBA achieved approximately 28 percent in growth, which is the highest amongst the 10 leading players in the life insurance sector.

HNBA also achieved tremendous growth in qualifiers for the Million Dollar Round Table (MDRT) and reported major improvement in terms of lapse rates over the last year, reaping the benefits of meticulous execution of robust plans.

It is pertinent to note that we have not employed a strategy of growth at any cost; instead, our pursuance of growth has been strategised in a manner that is sustainable and expected to provide consolidated growth over the medium to long-term time horizon.

Our focus has been to drive teams towards the highest levels of professionalism and ethical standards in every aspect of the business that we conduct, while upholding the best traditions and norms of society and corporate responsibility.

In my view, these achievements are commendable given the challenging backdrop against which the sector operated during the greater part of 2019. Moreover, the confidence that the market places in us augurs well with the growth that we have been able to achieve in these trying times.

Q: What are the major challenges and achievements of the HNBA team?

A: HNBA encountered fierce competition to increase business while endeavouring to retain its sales team amidst a bleak market outlook.

The company strived to keep its sales team energised and motivated as the country faced adverse conditions by implementing several countermeasures, which we believe have been successful, and enabled HNBA to achieve its top and bottom line targets.


Overall, 2019 was a remarkable year as HNBA set out to achieve an ambitious plan by reinventing its approach to business, employing an aggressive stance towards top line targets and technology adoption across the company.

HNBA holds prominent positions in terms of assets (fifth) and market share (sixth) among the top 10 players in the life insurance sector. The achievements of our team are further reflected
in gaining new business growth of approximately 28 percent – the highest amongst the 10 foremost entities.

As a team, we banded together to believe in larger goals and worked hard towards them. This resulted in HNBA delivering on its promise to all stakeholders at the end
of 2019.

Q: Could you outline HNBA’s main objectives through technology adoption?

A: HNBA is actively promoting a technology drive throughout its operations. The company embarked on a plan towards paperless operations especially when on boarding new customers.

Our aim is to enhance service experience standards by making the process convenient, user-friendly and efficient for customers as well as service advisers.

Life insurance customers expect claims to be settled speedily and accurately, which is a major reason why they opt for long-term contracts. Therefore, building trust is a key component of our business philosophy and we are constantly recalibrating claims processes to provide a hassle free experience to customers.

Q: This year, HNBA produced 75 MDRT members – almost twice as many as last year. How was this achieved?

A: MDRT is the highest level of recognition that insurance sales professionals could achieve as it upholds globally accepted best business practices, ethics and professionalism in financial services.

Qualifying for such an international recognition is con- sidered a high honour in the insurance sector.

HNBA had a clear vision and we strived to achieve 100 MDRT members in 2019. Having produced 75 MDRT qualifiers, of which one was a Top of the Table (TOT) winner and three were Court of the Table (COT) winners, we
are proud of our sales team’s achievements that brought the company to the third highest position in the life insurance sector in this category – this is the highest thus far in the history of HNBA.

Q: How would you describe the performance of the new products and riders introduced last year?

A: HNBA introduced two products to the market last year – viz. ‘PrivilegedLife’ and ‘SupremeHealth Benefit.’

The PrivilegedLife package is a comprehensive plan that offers adequate flexibility to accommodate a variety of unexpected circumstances and acts as a secure investment for future retirement needs.

This versatile lifestyle product became the bestseller of the company in December 2019 shortly after introduction and is unique due to its flexibility. Moreover, members are able to complement the policy with a variety of rider covers according to their specific needs.

The SupremeHealth Benefit package is an all-inclusive cover that enables convenient access to optimal healthcare services as and when the need arises. This policy provides up to Rs. 50 million in worldwide coverage annually.

Moreover, having partnered with over 60 hospitals locally, HNBA is able to provide a convenient cashless operation to customers. And with comparatively affordable rates, we anticipate that these products will bring greater success to the company.

Q: And what else can we expect from HNB Assurance?

A: We believe that 2020 will be an exciting year for HNBA and look forward to the many successes we’ll reap this year. Greater feats can be expected from us as we stride towards the future on this expeditious momentum.