Low penetration enables great leap forward for insurance industry:Ronald Perera

by Hiran H.Senewiratne

Sri Lanka’s insurance penetration is less than two percent of the total population and there was enormous potential to grow this sector. However, motor insurance is doing well because every single vehicle owner  has to obtain a  vehicle insurance policy, newly appointed Chairman of Sri Lanka Insurance Corporation Ltd  Ronald Perera, PC, said.

 “Penetration of life insurance is  less than  two percent 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. This is true especially for young people who are already employed or engaged in any business,” Perera said at an event where he was welcomed by its  staff and well-wishers as the  26th Chairman of the Sri Lanka Insurance Corporations (SLIC) on Thursday.The event was held at the SLIC head office at Vauxhall Street, Colombo.

He said that in the 1980s the insurance field was liberalized enabling private and foreign insurance companies to enter the market. Today there are 27 insurance companies in Sri Lanka of which SLIC enjoyed the number one position despite being a government entity.

 “Government institutions are subject to 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 other private or foreign insurance company. Despite these odds and challenges, we have been able to maintain the number one positions in the insurance field,” .Perera said,

He also said that to penetrate into the youth market, new innovation and the latest technology has to be used. This is especially so with regard to health insurance policies because such cover enables youth to work without fear for their lives.

“This being a competitive industry we have to embrace new technology together with innovations. If not we cannot exist in the market because the technology will overrun the industry. This happened to companies like  Kodak and Polaroid in the photography industry where digital technology took over.”

Sri Lanka Insurance has all the potential of being the largest insurance company with a highly skilled work force and with an excellent brand image, he added.