Life insurance penetration, low in SL - AIA official | Sunday Observer

Life insurance penetration, low in SL - AIA official

The high dependency rate in Sri Lanka is a major drawback to increase life insurance penetration, which is at a low level in the country, AIA CEO Pankaj Banerjee told the launch of the AIA Vitality program.

Banerjee said the dependency rate in Sri Lanka which is around 52 percent, is an indication of the aging population which lacks a solid income in their retirement.

A large number of parents depend on their children for financial support. Many of them are left to themselves, as the children are either overseas or do not pay adequate attention to parental needs .

Sri Lanka’s life insurance penetration is less than five percent in terms of its premium to GDP ratio.

However, household life insurance penetration is around 23 percent. “Lack of education and disinterest in insurance are key factors for the low penetration in the life insurance sector.

“Our aim is to educate people on the benefits of a life insurance policy which provides relief to the dependents and next of kin,” Banerjee said. He said an income alone is not sufficient to be happy and content in old age. Leading a healthy life is important.

“AIA Vitality uses extensive science-backed research and behavioral economics which shows that incentives can encourage people to adopt healthy behaviour,” Banerjee said.

Participants could download the application free from the Google play-store or the Apple app-store.

It offers weekly targets which can be achieved by staying active such as working-out in the gym, running or walking.

AIA Chief Marketing Officer Nikhil Advani said, “We wish to change the message of ‘you die, we pay,’ to we will pay you to live a better life.” - LF