HNB ASSURANCE
Q: How has the pandemic impacted the life insurance segment over the last two years?
A: It has been a roller coaster ride. When the first wave hit, operations were severely impacted due to the uncertainty that prevailed, social distancing protocols and lockdowns.
During this uncertain time, we faced many challenges in acquiring new customers and collecting premiums due from existing customers. Overall, the company endured a challenging second quarter in 2020.
However, the year ended on a good note since gradually, people started acclimatising themselves to the fact that the pandemic is here to stay. There was a positive change in customer perceptions towards life and health insurance.
This transformation, coupled with the fact that we were quick to revisit and reengineer our internal processes, resulted in HNB Assurance ending 2020 on a comparatively good note.
Continuing this momentum, coupled with a strong digitalisation drive and streamlining our processes, HNB Assurance recorded a good performance in 2021. As at September, while the sector was growing at around 20 percent, we recorded a 30 percent growth – the highest in the company’s history.
The pandemic drove the life insurance sector to embrace digitalisation, rethink our modus operandi, innovate, and understand and respond to the pulse of customers – a silver lining in a dark cloud.
Q: What mitigation strategies did your company use to minimise the adverse impacts of the pandemic?
A: When lockdowns were imposed, the company shifted to telecommuting and working from home, since we did not want to shut down operations and compromise service standards. Employees were empowered to work from home, and all necessary facilities and infrastructure were provided.
Our staff responded positively with unparalleled dedication, and we operated seamlessly even during islandwide lockdowns. In turn, the company ensured there were no reductions or delays in paying salaries and bonuses.
Innovation was another strategy that drove us during the pandemic. We fine-tuned our products to meet customers’ needs in the ‘new normal.’ Face-to-face meetings and in-person payments were replaced by virtual and remote capabilities through digital platforms, which were easily and securely accessible by our customers.
Regarding product innovations, the pandemic opened up new segments based on unique customer needs. For instance, we launched StudyGuard last year – a single premium life insurance cover that gives parents peace of mind regarding their children’s school education in the event of any eventualities.
Q: What are your views on corporate stewardship – and how did HNB Assurance demonstrate this in 2021?
A: Being in the business of life insurance, creating shared value for stakeholders is embedded in our DNA. We empower people when they most need financial support; we give people peace of mind in the face of uncertainties and provide a helpline in the form of pension schemes.
Our products touch the lives of – and therein protects – people of all ages across the country. Social service is part and parcel of what we do. For instance, we have paid COVID-19 related claims worth more than Rs. 132 million in the last two years – even though claims related to a pandemic are excluded in health insurance policies.
Furthermore, we undertake many corporate social responsibility (CSR) projects to uplift educational standards of rural communities, nurture arts and culture, support places of worship of all major religions, promote health and wellbeing, empower the differently abled and protect the environment.
Our longest standing initiative – i.e. to provide clean drinking water to underprivileged children in rural schools – covers over 65 schools across the island.
We also donated pandemic related medical equipment to four hospitals in the last two years. With HNB Assurance growing in size and reach, we will be investing more on our CSR undertakings to match our expansion drive.
Q: And last but not least, what is the medium-term outlook for the company?
A: HNB Assurance – a renowned life insurer in Sri Lanka with a National Insurer Financial Strength Rating of ‘A+ (lka)’ by Fitch Ratings Lanka – celebrated its 20th anniversary last year.
As we march forward with new products and processes, HNB Assurance has an aggressive and growth centric plan to become a tier one company by increasing market share in the next five years. We will achieve this through product and process innovation, and expansion of our sales force, channels and partnerships.
Backed by our parent company Hatton National Bank (HNB), and fuelled by the group’s legacy of trust and stability, we will be investing in building long-term relationships with our customers because that is the essence of life insurance.
Enhancing customer experience is critical for us, and we will do so through digital transformation – including the adoption of data analytics, AI and robotics. HNB Assurance is committed to creating real value for all stakeholders.
– Compiled by Ruwandi Perera
