Life insurance penetration less than 2 per cent of Sri Lanka’s population – SLIC’s new chairman

By Hiran H. Senewiratne

Sri Lanka’s Life insurance penetration is less than 2 per cent of the total population; but the sector has enormous potential to grow. However, the motor insurance sector is doing well because every vehicle owner has to obtain a vehicle insurance policy, newly appointed chairman, Sri Lanka Insurance Corporation Ltd Ronald Perera PC said.

“The insurance penetration level for Life insurance is less than two per cent of the total population. Therefore, we have to go to villages to promote and encourage people to obtain Life insurance policies, especially health insurance cover to provide them with a comprehensive health coverage, especially for young persons who are already employed or engaged in any business, Perera said at an event where he was welcomed by SLIC staff and well- wishers as the 26th chairman of the Sri Lanka Insurance Corporations yesterday. The event was held at Sri Lanka Insurance Corporation head office at Vauxhall Street Colombo.

Perera added: “In the 1980s the insurance field was liberalized, which enabled private and foreign insurance companies to enter the market. Today there are 27 insurance companies in Sri Lanka, out of which Sri Lanka Insurance enjoys the number one position despite being a government entity.

“Government institutions are governed by strict rules and regulations. At times we are not in a position to buy equipment for the company due to those rules. Therefore, we cannot take decisions like any other private or foreign insurance companies. Despite those odds and challenges we were able to maintain the number of position in the insurance field.

“To penetrate the youthful market new innovations and latest technology have to be used, especially driven by health insurance policies, because it enables them to work without fear for their lives.

“This being a competitive industry we have to embrace new technology together with innovations. If not it cannot exist in the market because the technology will overrun the industry, which happened to the Kodak and Polaroid camera industry, which was replaced by digital technology.

“The Sri Lanka Insurance has all the potential to be the largest insurance company with a highly skilled work force and with an excellent brand image.”