SLIC targets Rs. 60 b turnover this year | Sunday Observer

SLIC targets Rs. 60 b turnover this year

14 March, 2021
Jagath Wellawatta
Jagath Wellawatta

Sri Lanka Insurance Corporation (SLIC), the largest state-owned insurer in the country, aims at recording a turnover of around Rs. 60 billion this year surpassing the all time record notched last year, said SLIC Chairman Jagath Wellawatta in an exclusive interview with the Sunday Observer Business last week.

He said the company recorded a stellar performance of Rs. 55.2 billion last year, the highest turnover in its history despite an over five months lockdown that stifled the economy and brought daily chores of people to a stand-still.

Upbeat of a fairly quick recovery of the economy and normality being restored in the country, Wellawatta said the company is well poised to reach the turnover target set this year.

“With the highly committed and professional team to whom all credit should go for their untiring efforts, has  enabled the company to reach the pinnacle of success,” Wellawatta said. SLIC, which anchored a pioneering legacy of financial stability and trust that spans over five decades, emerged the market leader in the General Insurance segment last year reaffirming supremacy in the insurance industry. The state insurance giant commanded a market share of 20.3 percent, leading the General Insurance market and notched a GWP (Gross Written Premium) of Rs. 20,163 million as at December 31, 2020.

The company recorded six percent growth in the General Insurance sector despite the 1.5% negative growth rate of the overall General Insurance industry.

The non-motor insurance segment of SLIC recorded a phenomenal growth of 38% achieving Rs.8,357 million GWP while the motor insurance segment achieved Rs. 11,806 million GWP leading the motor insurance segment. Set up in 1962 as a State-owned corporation, SLIC today manages an asset base of over Rs. 211 billion the largest in the industry, the largest life insurance fund amounting in excess of Rs.116 billion, and a Rs.6 billion strong capitalisation, making it one of the most secure and reliable insurance solutions providers in the country.

SLIC has been in the forefront of offering tailor-made insurance products for all segments of society and in line with the objective of  insuring everyone leaving no one out the company launched the ‘Insurance for All’ concept last year to provide solutions from the largest to the smallest industries in the country.

“The ‘Insurance for all’ concept came handy to the uninsured segments such as the small and medium sector enterprises that make salient contributions to the economy. 

“Our products now have reached the farming, fisheries and plantation communities, providing them protection and assurance of a caring and supporting hand backing them at all times,” Wellawatta said.

The SME sector had not been adequately insured by the industry as industrialists in the segment could not afford it.

“Our aim is to provide affordable, accessible and convenient solutions to everyone so that no one is left uninsured,” the SLIC chief said.

Since independence Sri Lanka has been a welfare State that took care of the under-privileged segments. The need for a common social security system, a dire need gained traction with the proposal made by the Government at its last budget to set up a common social security system in the country.

Institutions such as the Social Security Departments and the Sri Lanka Agrarian Insurance Board cater to the insurance needs of those in the farming, fisheries and plantation communities.

“These institutions should be empowered to conduct social security systems for the needy segments of the society by which the government takes care of the premium while the recipient enjoys the benefits,” Wellawatta said, adding that a contributory payment system where the employer in both public and private establishments could contribute to the premium too should be given thought to provide protection to the uninsured.

He said an easy payment system where the client could make payments on a daily basis on convenience would be a way to support the social security system.

SLIC rose to the occasion to provide insurance protection to healthcare service providers, the tri-forces and public sector officials and all front-liners serving the community during the current crisis.

The State insurer has also pioneered many insurance solutions such as the premier motor insurance brand the “Sri Lanka Insurance Motor Plus”, which  redefined the motor insurance experience by introducing multiple innovative motor insurance products to cater to the needs of customer segments in the motor insurance market, the ‘Suraksha’ insurance scheme which enabled 4.5 million schoolchildren to receive financial assistance to ensure uninterrupted education through its  branch network of 158 outlets, the ‘Speed Investment’ the latest addition, the company’s Life product portfolio which offers higher returns for the policyholders.   The insurance plan can be further customised with additional covers. The insurance policy is open for anyone from 18-60 and policyholders can chose the policy period from 10, 15, 20, 25, 30, 35 to 40 years.

SLIC is the largest shareholder of Lanka Hospitals with 54.61% shares, the primary shareholder of Litro Gas Lanka with 99.94% shareholding and  Litro Gas Terminal, a fully-owned subsidiary of SLIC.