PROFILE

HNB Assurance
HNB General Insurance

Q: What is your assessment of the state of play regarding branding and brands?

Dinesh Yogaratnam (DY): We’re seeing brands investing now, more than they did in the last two years. Branding reaffirms a brand’s strength in the minds of customers and is important in the prevailing economic situation to maintain ‘top of the mind awareness’ and see that it translates into revenue streams for the organisation.

Businesses are investing in branding but the proof of the pudding is in the eating. A brand has to be an all-encompassing proposition that’s crystalised internally. You have to deliver your promises.

It is important that people understand and appreciate the need to provide oneself the financial protection to ensure that one’s family would not be rendered distraught or helpless if they were to go through any calamitous reality.

To this end, we see the sector as a whole making a concerted effort to instill this train of thought in the psyche of the public at large; and over time, we have begun to see a transition in this regard.

Q: What brand strengths has your business leveraged over time to realise its growth potential?

Lasitha Wimalaratne (LW): When it comes to insurance, we sell a promise: an intangible product, which offers value in the long run and not at present. So the most important factors for customers are a brand’s stability and the trust placed in it.

Our mother brand – HNB, which is around 130 years old, well-established and a leading private bank in the country – has enabled us to use its legacy to create trust.

Branding reaffirms a brand’s strength in the minds of customers and is important in the prevailing economic situation

Yet, we also realised the need to create our own brand identity. In this regard, we drew inspiration from the sun, which – incidentally, being an element in the HNB Assurance (HNBA) logo – is above all else.

Likewise, leveraging on the strength of our brand and the trust attached to it, we coined a brand campaign – ‘Winning your trust above all’ – which we have now extended to some of our product campaigns as well. We’ve manifested this element of trust by making it tangible in the returns we provide to our various stakeholders.

Q: How important is integrity in ensuring brand sustainability?

Sithumina Jayasundara (SJ): When we’re selling an intangible product, integrity plays a vital role in the customer’s mind. HNBA, HNB General Insurance (HNBGI) and our mother company HNB are all built on trust and integrity.

These factors are reflected in our delivery of claims, which ensure to customers that we deliver what we have promised and walk the talk. Continuously recording a customer satisfaction rate of more than 80 percent at the time of claim settlement through our monthly customer survey is testament to this.

DY: Insurance is based on the principle of ‘utmost good faith’ and there is a reciprocal need for both parties – insurer and insured – to work towards this. For instance, if individuals don’t disclose the entirety of the risk to try and lower the premium, there is an ethical conundrum for the insurer at the time of claim settlement since we are paying claims from a collective pool of risk. As a sector, we must bring this reciprocity of integrity to grow.

Q: What is the impact of branding on financial performance?

LW: Branding has a direct effect on a business’ financial performance. By aligning with our mother brand, positioning ourselves as a trusted player and delivering on our promises, we have proven ourselves and are getting to the top end of the market.

We have been growing at a compound annual growth rate (CAGR) of 20 percent, and our growth in 2021 and 2022 has been 29 percent and 26 percent respectively. In the first quarter of 2023, we are already growing at 24 percent when the sector is experiencing negative growth. We are leveraging our trust element and capitalising on branding in a significant way.

Q: How has the sector overcome challenges due to the country’s economic crisis?

SJ: In general insurance, market growth depends on economic activity – and the local economy is severely crippled. So although the industry has grown, this has been more from an inflationary impact and less from new business.

At HNBGI however, Although 10 to 15 percent of our growth can be attributed to inflation, the balance has been coming from new businesses – our branding investments and service delivery have paid off.

We have seen opportunities to do unconventional businesses, and capitalised on these and seen results. Armed with a capable team, which is our greatest blessing, we are confident of maintaining this growth momentum in the months and years to come.

  • Telephone 4793700 (HNB Assurance) | 4677066 (HNB General Insurance)
  • Email info@hnbassurance.com | info@hnbgeneral.com
  • Website www.hnbassurance.com | www.hnbgeneral.com