IASL Chief calls for urgent cooperation amongst industry players to boost life segment

By Shabiya Ali Ahlam
Insurance Association of Sri Lanka (IASL) Chief yesterday called for urgent and increased cooperation amongst industry players to make certain the potential of life insurance, which has witnessed dampened growth rates, is fully untapped.

Pointing out the industry is faced with fierce competition for a minute stake, IASL President Dirk Pereira said: “We need to be more cooperative. We need to be able to sell for a need. We need to be able to create value for customers and we must be able to show customers the importance of insurance.”

The life insurance industry has a market penetration of only 0.5 percent. While only 33 percent of the working population has insurance, only 12 percent of the entire population is insured.  Stressing the need for innovation in the industry, Pereira said it is imperative that the current rates change, that too “quickly”.

“Our ambition cannot stop at 33 percent. We by no means can settle at that. As an industry we can reach greater heights and for that we must think bigger. We have the capabilities and desire to do so,” said Pereira while addressing the 7th National Forum for Life Insurance Advisors (NAFLIA) in Colombo yesterday.

However, it was shared that the life insurance space that grew by 20 percent is witnessing a similar growth rate this year as well.  The NAFLIA was held with the objective of providing insurance advisors the inspiration and encouragement they need to ensure the industry continues to grow and evolve in a manner that is relevant to all 
Sri Lankans.

The 7th edition was held under the theme ‘Towards a day all Sri Lankans are insured,’ and provided the Life Insurance fraternity the opportunity to share key insights and knowledge on the importance of innovation to gain customer loyalty as well as gather different perspectives from international and local insurance experts.   

The event that featured IBSL Chairperson Indrani Sugathadasa as chief guest was addressed by K. Ravikumar, Zone Chairman, South Asia, Membership Communication Committee, Ambassador, MDRT (USA) and motivational speaker, Dr. Kuma Iddamallena.