- State giant reports market share of 21.3%, relegating Ceylinco to second place
State-owned giant Sri Lanka Insurance yesterday confirmed it has once again consolidated its position as the market leader in the General Insurance sector in the country.
The company has emerged as the No. 1 in General Insurance with a healthy market share of 21.3% as at December 31, 2017. The company commands a market share of 22.69% in the Non-Motor sector and a 20.5% share in Motor, leading both sectors of the General Insurance market.
SLI’s General Insurance business reported a market growth of 20.5% during the above period over the corresponding period of 2016. This is a remarkable achievement considering the General Insurance industry growth rate of 15.8% during the year under review.
The total Gross Written Premium of the General Insurance market for this period is Rs. 88.9 billion while the Compound Annual Growth Rate (CAGR) over the period 2013 to 2017 is 7.89%.
The company’s Motor Insurance segment reported a growth of 10.85% over 2016 with a CAGR of 9.53%. The Gross Written Premium (GWP) for the year 2017 was Rs. 11.56 billion.
Meanwhile, the growth in Non-Motor segment of SLI was reported at 39.68%. The sector achieved a GWP of Rs. 7.3 billion for the year which compares to an industry growth of 19.44% in this segment.
SLI also reported a total Gross Written Premium of Rs. 18.9 billion in the General category for 2017.
“This is a commendable performance in a market where there is intense competition among 28 insurance companies, of which 16 are involved in General Insurance,” SLIC said.
There are also 56 insurance brokers in the market. The number of insurance agents in the industry could be placed at 43,800. However, this is a market with enormous potential as the General Insurance penetration as a percentage of GDP is at 0.67%.
SLI’s performance in the General Insurance sector has been consistent throughout history. It has always come to the support of the communities that it works with and has honoured its claims. In fact, the largest-ever insurance claim in the island’s history, worth around Rs. 36.9 billion had also been paid by SLI in 2001 to SriLankan Airlines.
During 2017, SLI honoured General Insurance claims worth Rs. 9.3 billion of which Rs. 6.9 billion was related to Motor and Rs. 2.4 billion was in Non-Motor. Rs. 350 million was paid as claims in the aftermath of the 2017 floods; the company settled over Rs. 600 million in claims during the floods of 2016.
The company recently introduced the Bee Express service as a means of expediting motor claim settlements. A three-step process is utilised here to settle claims below Rs. 50,000 for private cars and private dual-purpose vehicles, Rs. 30,000 for three-wheelers, Rs. 20,000 for motor cycles and Rs. 35,000 for other private vehicles excluding buses.
The three steps are: 1) The customer notifies the SLI Call Centre about the accident from the accident site; 2) The Technical Officer assesses the damage and makes an offer to the customer from the accident site; 3) The customer accepts the offer and submits completed claim form to the nearest SLI branch office. Once these are completed, the payment will be paid to the customer without any undue delays or hassles.
Securing the insurance partnership of the Suraksha Free Medical and Personal Accident Cover introduced by the Ministry of Education for all Sri Lankan schoolchildren in October 2017 is another feather in the cap of SLI, which has already settled over 1,500 claims under this scheme.
Sri Lanka Insurance, which was set up in 1962, has firmly established itself as one of the most respected players in the insurance industry. With over 140 branches island-wide, an unparalleled asset base of over Rs. 190 billion with millions of policies in force, SLI continues to demonstrate its stability, strength and long-term sustainability.
The company was recognised with a Fitch Rating AA+(lka) National Long-Term Rating and AA+(lka) National Insurer Financial Strength Rating in August 2017. The rating reiterates SLI’s position as the strongest player in the local insurance industry.
Being backed by top international reinsurers such as SwissRe, Munich Re, GIC (General Insurance Corporation of India) and Zurich Reinsurance Company has continued to provide added strength and solidity to Sri Lanka Insurance’s position as the leading insurance services provider to the nation.