People’s Insurance demonstrates its resilience and agility with uninterrupted service amid pandemic

People’s Insurance PLC, a part of People’s Leasing and People’s Bank Group, has become one of the pioneers in Sri Lanka’s general insurance industry, with its swift adoption to operate in the new normal environment that emerged with the COVID-19 pandemic, in ensuring its customer base receives an uninterrupted and increasingly value-adding service. People’s Insurance PLC Chairman Isuru Balapatabendi discusses the company’s journey, the strategy adopted amidst the pandemic and some future plans of the firm in this interview: 

By Nishel Fernando

Q: As a leading general insurance company, how has People’s Insurance PLC evolved since its inception in becoming one of the most profitable firms in an intensely competitive industry?

People’s Insurance was initially founded by People’s Leasing PLC as a captive arm of the financial Group led by People’s Bank. As a Group, we are in fact the largest player in the country’s financial sector with a combined customer-base of over 14 million and with an asset base over Rs. 2.3 trillion.

Although at the initial stage we were catering only to the clientele of People’s Leasing in handling their insurance policies and other requirements, later we moved beyond captive business operations as the Group decided to expand further under a multi-channel strategy that we adopted, covering bancassurance, corporate and national sales segments and so on.  At the inception within a short-span of time, we went to achieve Rs. 1 billion in Gross Written Premiums (GWP) and into the second year in operation, we were able to post Rs. 72 million in profits. 

Later we also introduced one of the most effective mechanisms in claims handling for our motor insurance policyholders termed ‘call and go’. With this mechanism coming into operation, we were able to offer a superior service to our clientele. The captive segment still accounts for significant part of our business, but we are also focusing on expanding the non-captive business.

In order to expand the non-captive business, we are in the process of developing and introducing unique products. We have a very active Research and Development team in place, which identifies the current and emerging demand as well as trends of the population. So when the lifestyle of a customer changes, we are there with them.

Q: What are the key general life insurance products offered by People’s Insurance?

 We provide all general insurance requirements of our personal, corporate and SME clients, with an aim of becoming a one-stop shop for all general insurance needs of the population. All our product offerings come as comprehensive insurance packages with additional benefits to customers. 

Some of the unique products and services which differentiate us from the rest includes ‘call and go’ facility, our medical health care policy named People’s healthcare and our accident coverage which is termed ‘People’s Guardian’. In addition, another popular product is the ‘Nivahana’ which is a home policy package.

Our Solar Panel insurance policy is one such new product that is gaining traction at present among our client-base. We have introduced this product in identifying the country’s transition towards more renewable energy mix and to minimise the potential risk element in this mid-to-long term investment. 

Q: How the People’s insurance realigned its strategy to effectively address the implications of the pandemic?

Since the latter part of 2019, we have been expecting a potential lockdown or some kind of restrictions of movement and accordingly, we start getting prepared. We appointed a very effective COVID committee within the firm along with the development of a contingency plan well ahead of the lockdown in prioritising welfare and safety of employees and while doubling up our efforts on digitization in order to function remotely in a potential scenario. 

Therefore, when the lockdowns came into force, we were ready. We have enabled the sales team with electronic devices and customer service app with online platforms, and payment infrastructure were setup. As we managed to reach our customers digitally with least problems, our business wasn’t impacted to a far extent. 

In terms of premium payments, the customers can easily make payments online or via island wide CDM or KISOK machines setup at extensive People’s Bank self-banking units. We will be very soon introducing a mobile app to upgrade customer service further. This would facilitate our customers to resolve all of their insurance-related matters.

Q: What’s the level of preparedness of your company for the implementation of IFRS 17?

We have been working on it in three stages for quite a while. Having already completed the first stage, which was the GAP analysis, now we have moved to the second stage where we are looking at how we can make the transition to the new standard from the current accounting standard. We are working with the support of consultants and hope to conclude this stage soon. Thereafter, we will be able to take required actions for the implementation. 

Q: What’s your message to your clientele as well prospective clients on this day?

We have the most extensive coverage in the industry with the backing of People’s Leasing and People’s Bank network and also the Government has entrusted People’s Insurance in handling the COVID insurance policy for tourists, which is one of the most important insurance coverage types at this moment. So, with the trust placed in us, as a responsible corporate citizen, we always prioritise the customers’ safety and convenience. With this in mind, we have extended a range of services digitally. 

We have also been able to continue uninterrupted services during the most difficult time in demonstrating our agility and resilience. We as a responsible firm would like to tell our customers and potential customers that we are determined to further expand our business and introduce convenient methods of maintaining a good relationship with you in order to serve you better with love and care, so therefore continue to have faith in us.