‘Insurance, a pipe dream for many’ | Sunday Observer

‘Insurance, a pipe dream for many’

R. Renganathan
R. Renganathan

The need for Life insurance outside the Western province, has been growing steadily over the years, said Ceylinco Life Managing Director R. Renganathan.

The need for greater protection in single-breadwinner families has been the compelling reason to obtain insurance cover, he said.

“We see this segment growing at a rapid pace due to the current lifestyle of people and we expect more households to come under insurance cover in the future,” Rengathan said, adding that digitisation, technological development and improvement in processes of companies will boost the country’s life insurance sector in the future.

The Life Insurance market leader plans to launch a series of products to meet the demographical needs of the country. “We have taken into account all age groups and lifestyles of people, for convenient and tailor- made products. Many retirement products are also in the pipeline,” he said.

However, insurance still remains a pipe dream for many in the country. Lack of understanding and the need for tangible benefits have been obstacles for growth of the Insurance Industry.

“Numbers speak for themselves. We pay four death claims and 40 medical claims a day,” he said.

Ceylinco Life recorded a strong first half performance into the third quarter of the year, posting impressive top and bottom line growth for the nine months ending September 30, 2018.

The company reported a profit before tax of Rs 3.734 billion for the period, a 48% growth over the corresponding nine months of 2017. Net profit increased 62 % to Rs 3.28 billion.

Income for the nine months was up 10% to Rs 20.6 billion, with net premium income growing by 12.7 % to Rs 12.588 billion and investment and other income increasing by 6% to Rs 8 billion, the Company said.

Ceylinco Life’s investment portfolio grew by 14 % to Rs 105 billion, while its Life Fund stood at Rs 86.7 billion as at September 30, 2018, a growth of Rs 2.36 billion over the third quarter alone, and an increase of Rs 5 billion over the nine months since the end of 2017.

Total assets increased by Rs 12.29 billion (11.6%), from end 2017 to stand at Rs 118.38 billion at the end of the period under review.

Ceylinco Life was declared the ‘Best Life Insurer in Sri Lanka’ by the World Finance magazine for the fifth consecutive year last year.