Sithumina Jayasundara


The strategic role of insurance in mitigating risks and facilitating progress

Primary aim of insurance

To offer individuals and businesses financial protection against various risks, such as property damage, liability and loss of income.

More aims

Promoting stability and security in financial planning by facilitating the transfer of risk from policyholders to insurance companies.

Service outcomes

Expert risk management, financial stability and diverse insurance products ensure effective risk handling, meeting customer needs and withstanding market fluctuations.

Economic contributions

Enabling investment, entrepreneurship and innovation, while supporting business continuity and resilience by covering losses and liabilities.

National contributions

Job creation, revenue generation and contributing to GDP – through insurance premiums and related services.


Digital transformation, ‘insurtech’ (insurance technology) adoption, and innovative models such as usage-based and peer-to-peer insurance.

Focal points

Sustainability, and environmental, social and governance (ESG) in risk management.

Purpose of underwriting

To evaluate risks; set profitable policy terms; utilise data analytics for informed decision making; and balance risk, pricing and diversification to optimise performance.

Key covers

Property insurance for damages, liability for legal issues, health for medical costs, motor for vehicle incidents and business insurance for diverse risks.

Impact of deductibles on premiums

Higher deductibles mean lower premiums with policyholders bearing more claims risk while lower deductibles result in higher premiums due to increased insurer risk.

Purpose of deductibles

Deductibles enable policyholders to customise coverage and balance premium costs with out-of-pocket expenses based on risk tolerance and financial circumstances.

Assessing risk

Insurance professionals use actuarial analysis, statistical modelling and risk assessment to quantify risks.


Diversification, reinsurance and risk retention optimise risk-return profiles, by adapting to evolving risk landscapes, threats and regulatory changes – and promoting resilience and sustainability.

Reinsurance’s role

Provides capacity and capital support in the event of catastrophic risks, large loss events and unexpected claims volatility.

Outcomes of reinsurance

Promotes growth and innovation; and underwrites expansion by offering additional capacity, expertise and risk sharing arrangements.

Current challenges

Navigating global regulations; and meeting evolving customer expectations, preferences and demands for personalised products, seamless experiences and transparent pricing. 

Tech dimensions

Cybersecurity, data privacy and tech vulnerabilities in a rapidly evolving digital environment.

Role of actuaries

Actuaries in insurance companies play a critical role in risk management, pricing, reserving and financial reporting.

Actuarial process

The use of mathematical models, statistical techniques and data analysis, to assess risks, project future liabilities and ensure financial stability.

Expertise of actuaries

Enable decision making and strategic planning; and maintaining solvency and profitability in the insurance sector.

Employee training

To equip employees with skills and knowledge to navigate changing market dynamics, and address emerging challenges.

Sector developments

Digital channels, mobile apps and self-service platforms for insurance interaction. 

Impact of technology

Insurance is transforming the automation of underwriting, claims processing and customer service tasks to boost efficiency, cut costs, and improve speed and accuracy.

Tech processes

Adopting AI, machine learning and predictive analytics for tasks such as risk assessment, fraud detection and customer segmentation.

Virtual integration

Integrating digital platforms, mobile apps and Internet of Things (IoT) devices to provide innovative products, personalised experiences and real-time monitoring.

Security measures

Insurance companies must implement robust cybersecurity measures, encryption protocols and access controls.

Purpose of security measures

To mitigate cyber risks and ensure compliance with regulatory requirements.

Stakeholder dynamics

Collaboration with experts, partners and regulators is crucial to stay updated on digital security threats, best practices and compliance.

Navigating uncertainties

Requires adaptive risk management, prudent underwriting and proactive customer support for financial stability, and to aid policyholders in crisis.

Professional growth

Prioritise customer-centricity, digital literacy and ethical conduct for lasting connections, innovation and professional integrity.

Careers in insurance

Require strong analytical skills, effective communication, ethical conduct, adaptability, resilience and a commitment to continuous learning.

Mantra for success

Never give up.

– Compiled by Dona Senara
Sithumina Jayasundara is the Chief Executive Officer of HNB General Insurance.