The market structure of the insurance industry is favourable for the policy holders and potential customers where large number of players compete for a growing market share.
The insurance industrialists need to focus their attention in market segmentation for better performance, HNB Assurance Managing Director Manjula de Silva said.
The insurance companies need to differentiate and this will lead to efficient market penetration supporting customer perspective, he said at the first ever investor forum of HNB Assurance held on Friday in Colombo.
The segregation of life and general insurance businesses will enable consolidation and thereby increase penetration. The insurance penetration has marginally increased last year compared to the year before from 10.4 percent to 10.9 percent.
It is important to change the mindset of potential customers regarding the concept of insurance where stressing the fact that it is a protection and not an investment.
Though an investment component is there, the core is a cover against risk, he said.
The company has a capital expansion plan in meeting the Insurance Board of Sri Lanka (IBSL) requirement and expect this to support faster growth.
The capital infusion will be utilized in branch expansion efforts, system upgrade and brand building.
The stated capital will be increased three fold from Rs 375 million to Rs 1.17 billion when this expansion plan is in place, he said.
“The company’s main focus will be the retail and small policy holders where higher return could be generated.
It is profitable to have this type of clients and we also will be looking at corporate clients in a selective way to contribute to the top and bottom line.
“We will emphazise on consistent performance in both top and bottom lines and acceleration of growth momentum,” de Silva said.
source - www.dailynews.lk
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