AXIB announces entry into Sri Lankan market

By Channa Fernandopulle

Insurance and reinsurance broker Ax Insurance Brokers Ltd. (AXIB) marked its official entry into the Sri Lanka’s market last week. 

Formerly known as Asset Eye Insurance Brokers, the rebranded AXIB will be working in partnership with renowned multinational NMG Consulting to provide reinsurance advisory and placement services in addition to retail broking facilities. 

Speaking to a small but distinguished gathering of invitees comprised of leading figures in Sri Lanka’s insurance industry, AXIB Managing Director Roshan Perera elaborated on some of the reasons behind the company’s re-entry into the Sri Lankan market.  

“We at AxIB are excited to increase our contribution to Sri Lanka’s fast-evolving insurance market. While we will be continuing our direct broking business we will also be placing an increased focus on high value arrangements in reinsurance as well. 

“The Sri Lankan reinsurance business has grown from around Rs. 3 billion in 1998 to Rs. 9 billion today but this is still a smaller market than what larger international brokers tend to focus on therefore we feel there is definitely a gap in the local industry that can be filled,” he stated.

He further noted that given recent changes to the domestic insurance regulatory framework, particularly in terms of risk based capital standards, Sri Lankan insurance companies had begun to place greater emphasis on more sophisticated risk frameworks relative to profitability. 

Notably, Perera announced that AXIB was currently in discussions to bring a major international reinsurance broker to Sri Lanka. 

“We are speaking with a large international reinsurance broker to come to an arrangement where we will be carrying out all of the analytical work and then working in partnership with them to arrange placements however discussions are at a preliminary stage and we expect to make a further announcement on this front in the near future,” he explained.

NMG Consulting is Sri Lanka’s largest supplier of general insurance actuarial advisory and technical reinsurance broking services to support 15 companies in the country. 

Commenting on the wider view of Sri Lanka’s insurance industry NMG Financial Services Consulting Partner Matthew Maguire stated that overall trends in the domestic industry – particularly in terms of capital adequacy ratios – carried significant potential for growth. 

“Recent changes in the regulatory landscape have resulted in companies having to think more strategically about their underlying business and its consequences from a risk based capital perspective. This has led to an overall change in the way that companies approach their business. 

“We believe that reinsurance consumption is going to change under the risk based capital solvency regime with buyers of reinsurance more aware of the effectiveness of different arrangements and the impact they have on the company’s capital position,” Maguire stated.