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by Chandani Jayatilleke

Ceylinco Insurance (General) has recorded a gross turnover of Rs. 2,541 million for the financial year ending December 31, 2002. an increase of Rs. 650 million or 34 per cent over the previous year, the Company's Chief Executive Director, Ajith R. Gunawardena told the Daily News yesterday.

It was also the highest turnover of the company since 1994 and the highest growth in the industry last year, he said.

According to Gunawardena together with the Life Division (Rs. 2,359 million), Ceylinco has achieved a premium income of Rs. 4.9 billion.

Referring to the insurance industry in the country, he said that the growth was expected to be around 18 to 19 percent in 2002. "Compared to the industry growth, we have achieved a higher growth," he said.

He attributed the success to a range of innovative products introduced by the company. "The company's insurance policy volume increased significantly with the introduction of 'one policy concept' instead of many different policies.

"It's convenient for customers to have one policy which covers areas such as fire, marine, accidents and miscellaneous. This concept introduced by our Chairman, Lalith Kotelawala has earned a valued recognition in the industry today," he said.

"We have a network of 51 branches and 24 VIP centres to support the growing needs of insurance requirements of vehicle users. We also opened a branch in Jaffna last year where we have already surpassed our expectations and targets," he said. These developments and new business areas have helped the company to secure a significant 23% market share. "In the non-motor sector, our market share is 24%. The general division also doubled the premium income of its closest competitor," Gunewardena said.

The company's one-day cover policy which can be obtained for Rs. 5 is claimed to be one of its kind in the world. "This policy covers accident, injury and death. Considering, the increasing number of road accidents in recent times, more people have obtained this policy. Another major policy, which contributed to the growth, was the Diyawara policy for the fishing community."

With a successful financial performance last year, the company is now set to 'revolutionise the insurance industry' in the country beginning this year. In an effort to support this concept, the company plans to strengthen its overseas business volumes this year. "We already have joint ventures in Nepal, Bangladesh, the Maldives and Mauritius where the company's contributions have been duly recognised by industry experts."

"In the local market, we are planning to introduce more insurance policies such as 'one-day' cover to attract more people to seek insurance covers," Gunawardena said.

Referring to competition he said as an indigenous company, Ceylinco is confident of taking the challenge. "We have the strength, know-how and human resources to support the company achieve its business targets." The competition is good. We have already proved that we have the ability to compete with foreign players.

However, it is Government's responsibility to introduce insurance policies to create a level playing field for the business, he said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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