INSURANCE SECTOR
Namalee Silva
SAFETY NET OF A NATION
Sri Lanka’s insurance sector in the context of the present and the future
Overview of the insurance sector
In the past couple of years, it has evolved from traditional insurance to that of a more dynamic and technology driven sector.
Key developments
The impact of the COVID-19 pandemic has propelled insurance solutions up the priority ladder of consumer needs
As a result of which…
The sector has responded quickly, reengineering processes and providing innovative strategies catering to the growing demand for accessible, customer friendly solutions.
Core strength of the insurance sector
The insurance advisor network consists of foot soldiers who are spreading the message of protection to all corners of the country.
Threats that hinder the sector’s growth
A lack of emphasis on insurance solutions and ad hoc sanctions by the state.
Obstacles to the growth of life insurance
Though there has been growth in penetration, the main obstacles are a lack of knowledge about the importance of insurance and poor financial discipline.
And the same as regards general insurance
Budgetary sanctions such as the prevailing vehicle import restrictions have impacted market development.
Opportunities for the local insurance sector
Increase of numbers in the ageing population, health conscious decision making and indemnity insurance.
Weaknesses of the sector
Gaps in grassroots level awareness of insurance, traditional product portfolios that need immediate change and outdated systems.
Evolving trends in consumer behaviour
The need for digital-based insurance solutions and rapidly changing consumer dynamics with the rise of generation Z.
Future of the local insurance sector
‘Insurtech’ (technological innovations to eke out savings and ensure efficiency in the current insurance model) that’s supported by AI and IoT.
Role of insurance in economic recovery
To act beyond the scope of the insurance business and innovate solutions to support emerging businesses.
Public engagement imperatives
Reduce dependency on the state by educating the public about disciplined financial management.
Initiatives to enhance customer satisfaction in challenging times
Digitised products, consumer friendly processes and online gateways for easy payment of premiums.
Impact of digitisation on the insurance sector
Digitisation is the future of all sectors. This will have a positive impact with efficient and convenient services, less wastage and greater sustainability
New prospective customer segments
Gig economies, gen Z and senior citizens.
Areas of improvement for insurance professionals
Thorough technical and digital knowledge, as well as training and instilling professional values based on ethics.
Gender balance in the sector
The insurance sector embodies a better gender balance than most other industries with a fair distribution at every level.
Impact of the digital age on Sri Lanka
Faster and more efficient services, free and innovative thinking, novel business models, opening up more employment opportunities – and eradicating the brick and mortar element of doing business.
Impact of social media on the world
Positive and negative effects: the global learning we derive from each other, enhanced tolerance and inclusiveness are some of the many benefits
Mitigating the negatives
A simple family dialogue could mitigate the negative effects.
Competition drives innovation
Yes, competition is one of the key drivers of innovation, next to market needs and the quest for solving pressing social problems – after all, we are in the business of protection.
Corruption is affecting industrial and economic growth
Yes, corruption hampers growth – be it economic or social. It eradicates the value systems on which society is built.
The insurance sector in five years’ time
It will be extensively digitised.
In what way?
With an increase in mobile phone penetration, insurance companies will be able to provide solutions to middle and low end markets at affordable premiums.
Micro insurance potential
Consequently, we will see the sector penetrating micro insurance markets too.
The future you envision for the country
A truly inclusive nation with tolerance and respect for diversity – be it religious, cultural or diverse gender orientations.
Your mantra for success
Stay relevant, embrace change and innovate.
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