Sri Lanka’s father of Insurance Chandra Schaffter wins Asian Lifetime Achievement Award

Tuesday, 30 October 2012 00:30 -     - {{hitsCtrl.values.hits}}

Considered by many as “The Father of Insurance in Sri Lanka,” Chandra Thomas Adolphus Schaffter was feted with a prestigious lifetime achievement award at the glitzy 16th Asia Insurance Industry awards on Sunday in Malaysia.



The awards, hosted by Asia Insurance Review, recognises and salutes excellence among Asian insurers. The awards has for over 16 years been a much-coveted endorsement by peers in the industry. It has become a highlight of the insurance annual calendar and is supported by several big names in the industry.



Always humble and understated, Schaffter accepted his prize with a call to his peers across Asia to love and commit to the growth and penetration of the industry, maintaining the need for integrity and accountability. He spoke passionately and with disarming humour of his lifelong love affair with the industry.

Chandra, or CTA as he is sometimes known, serves as Deputy Chairman and Director of Janashakthi Insurance PLC, Sri Lanka. He has contributed immensely to the development of the insurance industry in Sri Lanka. From a regional footprint his impact has been felt in three markets: India, Sri Lanka, and the Maldives.

His legacy goes beyond an entire three generations of industry players to whom in many ways he has been, as a staff tribute on his 60th anniversary stated, the oak, the anchor, and the lamp that lit them onwards to greater heights.

As part of its extensive deliberations, the Judging Panel of 29 distinguished industry leaders and regulators shortlisted 40 industry players out of the 800 entries received for the 14 categories.

The eminent Panel of judges consisted of: Annie Choi, Commissioner of Insurance, Hong Kong; Emmanuel F. Dooc, Insurance Commissioner, Philippines; Huang Tien-Mu, Immediate Past Director General, Insurance Bureau, Financial Supervisory Commission, Taiwan; A.K. Roy, Chairman/Managing Director, General Insurance Corporation of India; Alan Wilson, Regional Chief Executive Officer, MSIG Holdings (Asia) Pte Ltd.; Arthur Lee, Chief Executive Officer, Tokio Marine Asia Pte Ltd.; Bernd Kohn, Chief Executive Officer/Principal Officer, Munich Re Singapore Branch; Chai Sophonpanich, Chairman and President, Bangkok Insurance Public Co Ltd.; Christopher Ho, Chairman, Singapore Reinsurers’ Association; Dave J. Matcham, Chief Executive, International Underwriting Association; and David L. Fried, Chief Executive Officer, Asia Pacific, Allianz SE.

In 2012 Schaffter completed his 60th year in the industry and still works daily at the age of 82. He catalogued the genesis of the industry in his memoirs, ‘My 60 Years in Insurance,’ in which he states: “In many ways insurance has been the end all of my life. Its values of good faith and integrity values that I endeavour to perpetuate in all I have done.”

A testimonial by Insurance Ombudsman of Sri Lanka Dr. Wickrama Weerasooria in support of Schaffter’s nomination for the 16th Asian Award stated: “Chandra Schaffter is an exceptional human being, a family man, and an entrepreneur par excellence, and undeniably a true pioneer of the modern insurance industry of Sri Lanka, to which he has devoted the past 60 years. He founded and successfully developed a business enterprise into a household name synonymous with reliability, efficiency and trust. Due to his intrusive business acumen, indefatigable hard work, deep insights, and razor sharp mind, which enabled him to see opportunities from problems and translate dreams into realities, and by his inspirational leadership, Janashakthi is now regarded as a major leader in our country’s insurance industry.”



Small beginnings

Orphaned at a young age, and after an aborted attempt at university, he entered the insurance industry as a clerk in 1952, in the Life Department of the Ceylon Insurance Company.

In 1953, he joined Manufacturers Life (now Manulife), also as a clerk, but was promoted Branch Secretary within three years and was the company’s No. 2 in Ceylon. In 1958, he joined the Insurance Department of Carson Cumberbatch & Co., a large agency house managing tea and rubber estates. He rose to be the Manager.

In 1973, Schaffter (with wife and four little children), took his family to India to start anew with absolutely nothing in hand. He operated as an Insurance Consultant and a Loss Adjuster both in Sri Lanka and India, with his services being sought after by many leading individuals, and mercantile establishments. In fact he practically pioneered the concept of insurance consultancy in India. He worked in India for over 12 years.



A catalyst for reform

In 1979, he was asked by the Minister in charge of insurance to provide a blueprint for the setting up of a subsidiary/independent corporation that catalysed the liberalisation of the insurance industry in Sri Lanka. On the back of this blueprint, the Government set up the National Insurance Corporation (NIC).

In I980, when the National Insurance Corporation started, he was appointment as Principal Agent for National Insurance Corporation, the only individual/standalone company (Protection & Indemnity Co. Ltd.) to get this license, in addition he managed two more of the eight approved players viz – Acland Finance and Investments Ltd and James Finlays and Co.

In 1986, he presented another landmark paper on the invitation of the then Finance Minister, which was successfully presented to Parliament, to bring about the breaking of an 18-year State monopoly and the allowance of private ownership in insurance. Schaffter was the architect of the proposals for this reform.



Playmaker in Eagle Stars’ entry to Sri Lanka

Schaffter was then instrumental in persuading Eagle Star to form CTC Eagle (via Ceylon Tobacco Co.), the first multinational insurer post nationalisation. He also provided entire management services for five years.

He structured their life products that stood that held sway some two decades (through subsequent ownerships by Zurich and Aviva).

Schaffter also formed P&I Insurance Brokers in Sri Lanka – the largest brokerage company at that time (and acquired Acland Finance and Investments Limited, a Government owned principal agent) in 1993.



Founder of Janashakthi Insurance

In 1994, he singlehandedly set up, the first specialist Sri Lankan Life insurance company, Janashakthi Life, with just 32 staff, and the next year he opened up the first specialist General insurance company.

Astoundingly, apart from actuarial assistance in calculating life premiums, Schaffter did all the work in setting up the companies, formulating and drafting all the policies – both Life and Non-Life and in recruiting the senior staff. Five years on, he merged the two entities into Janashakthi Insurance. He built up 70 branches based on a novel concept of franchised agents.

In 2000, he merged the two companies to form Janashakthi Insurance Company. In 2001, the company bought the controlling shares in National Insurance Corporation, while in the subsequent year, the total ownership of the NIC was bought over by Janashakthi, which today has the highest paid up capital of any insurer at Rs. 1.49 b. Janashakthi was the first insurer to gain ISO status, both in Life and General lines, and has nearly 100 branches and 2,500 staff.

He consistently led the way to bring the concept of protection and safety to the people with practical CSR initiatives such as installing safety barriers and pedestrian crossings in all areas of high traffic density in Colombo, which saved many lives.

He championed the highest payout of any insurer in Sri Lanka beyond the payment of sums assured to the 2004 tsunami victims, which was considerably in excess of the company’s liabilities.

In year 2002, he led a Janashakthi cricket team to war-torn Jaffna with star bowler Muralitharan, in front of 15,000 fans.





The innovator – Always keeping people at the heart of his product strategy

Constantly sensitive to the underdog he initiated the pedestrian ‘No Fault Scheme,’ a unique product for victims of fatal accidents, who are protected irrespective of driver culpability.

His innovation peaked with Life Unlimited – the only insurance policy in Sri Lanka and perhaps in the world to offer Life and hospitalisation benefits for the entire lifetime of the policyholder, even after premium payments ceased.

He was the Presidency of the Sri Lanka Insurance Association in 2001/02. He has served in the Insurance Legislation Committee, the Government Pension Fund, and the Financial Reform Committee, and was for several years the representative for insurance at the Ceylon Chamber of Commerce.





A man of many parts

Schaffter was an outstanding sportsman – a double international in hockey and cricket for his country. He was also the Manager of Sri Lanka’s National Cricket Team on several occasions, and was appointed a Vice President of the Ceylon Olympic Association. He was a National Selector in both cricket and hockey for many years.

Today the company he founded is run by his son Prakash Schaffter who in turn carries the torch of insurance from the solid foundations set in place by his father. Janashakthi is Sri Lanka’s third biggest insurer and one of the country’s most stable and profitable companies with a total income of Rs. 7.27 billion and total GWP of Rs. 7.13 billion for the year ending 2011 – its best-ever performance to date.

Janashakthi continues on an upward trajectory having recently joined the ranks of the most transparent companies in the country at the association of Chartered Certified Accountants Sustainability Reporting Awards. The company has a strong track record of claims payments that now tops Rs. 20 billion.

Spending over 30 million per annum on human capital, it aspires to be the best at everything it does. As part of its pledge to offer the fairest and greatest value in risk mitigation to its customers it has an exceptional track record of market delivery and pro-people market innovation, prioritising profit with a purpose and a deep commitment to contributing to society by touching lives with everything it does.

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