Tea with Ramal Jasinghe, CEO / Asian Alliance

Name : Ramal Githan Jasinghe

Address : 22, Sri Maha Vihara Road, Kalubowila, Dehiwela, 10350, Sri Lanka.

Date of Birth : July 20, 1959

Schools attended : S. Thomas' Preparatory School, Colombo 3 : 1965 to 1966 and S. Thomas' College, Mount Lavinia : 1967 to 1979

Academic Qualifications

Master of Business Administration (MBA)

Postgraduate Institute of Management - : University of Sri Jayawardenapura

Trained in top management programmes:

The Stanford University Palo Alto California USA

Indian Institute of Management - Ahamedhabad India.

Professional Qualifications

Chartered Marketer of CIM, UK

Fellow of the Chartered Institute of Marketing, UK (FCIM)

Diploma of the Postgraduate Institute of Marketing, UK (Dip. M)

Fellow of the Academy of Marketing Sciences, USA (FAMS)

Member of Sri Lanka Institute of Marketing (MSLIM)

Part qualified Graduateship of the Institute of Chemistry, Ceylon

Present Employment

Chief Executive Officer at Asian Alliance Insurance Company Limited from April 2005 to date.

Community Activities

Charter Member of the Lions Club - District 306 B, Sommerset Club, Colombo

Member of the Kiwani's Club of Colombo

Member of Young Men's Christian Association

Sports activities

1. Swimming

Selected to the Asian Games Pool (1978)

Selected to represent Sri Lanka in Lahore (1978)

Awarded College Colours (1976 to 1978)

2. Waterpolo

Selected to the National Pool (1978 to 1979)

Awarded College Colours (1976 to 1979)

Was adjudged 1st Runner Up of the CIM Achiever Award in the Large Sector Category at the CIM Marketer Awards 2002, Sri Lanka

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Shirajiv Sirimane

Insurance and banking are the main drivers of the economy, Chief Executive Officer of Asian Alliance Ramal G. Jasinghe said.

Speaking to 'Daily News Business' he said that the industry contributes around 1.8 percent to the economy out of which 90 percent is generated from the non Life portfolio. The value of the industry is Rs. 20 billion and is growing.

Jasinghe who moved into the company three years ago said that Asian Alliance is niche player and maintains the highest annual average premium in the Life portfolio which is around 37,000. "Our closest competitor's average premium is around 15,000," he said.

The company's unblemished record is the key to its success, he said. Within a very short time period, Asian Alliance Insurance PLC has achieved what every company yearns for; it has touched the hearts of its customers with outstanding levels of professionalism and service.

Asian Alliance commenced operations in December 1999 with 50 employees and today it has increased to 460. The company caters to an ever-growing client base that consists of corporate and individual clients. It operates through a network of 13 Regional Distribution Offices located strategically.

Q: What are the segment that drives the industry?

It's the motor insurance as it's compulsory and is not optional like life. Life insurance is not something that you buy. But it's something that you sell.

Q: What is the potential and the new trends of the industry?

The Sri Lankan insurance industry despite having 15 players still has opportunities as the penetration in the Life portfolio is still very low. So there is scope for tremendous growth.

The advertising budgets of the insurance companies too are every high and I think they spend more than Fast Moving Consumer Goods (FMCG) category. One reason for this is to invite existing customers to their companies and also to educate and attract the segment that do not have access to insurance.

The growth of the Life Portfolio is some what slow as the disposable incomes of people are low. Some cannot maintain premium due to this.

However after the tsunami the awareness for insurance picked up We also see a new area developing for micro finance and from the SME sector which is very encouraging.

However we also observe high loss ratios in the medical insurance industry.

Q: Isn't Sri Lanka slow to innovative and alternative products?

In some way it's correct. We are yet to see insurance for Pets or similar policies. Some players do not have the courage for it. Asian Alliance would look into these areas and we have already set up a special unit for this purpose.

Q: How is new technology assisting the industry?

This is an area where we are surging ahead. We are developing web sites where there would be updates on claims and other information. By introducing IT we have saved over Rs. 50 million.

Q: What is the administrative structure of Asian Alliance?

We have an Exco comprising professionals to look after each division. I do not interfere with their decisions and this works well for the company as there is a blend of minds working.

We also are very patriotic and have the national flag on our desks. For us country comes first.

Q: How do you see the new regulations for the industry?

Regulations are good and are needed to guide the industry and they are playing an active role with new legislature and higher capital requirements. However there are new challenges as well as a result of new legislature.

There is speculation that insurance segment is to be broken into two segments. I think the industry is too premature for this and it may also lead for new inexperienced players to invade the market which may be detrimental to the industry.

Q: Do you see an emerging market in the Eastern Province?

Yes and No. During the peace process there was an exciting market that was developed. However today customers may have changed. So we would study that further.

Q: What is the message you give for people who want to get involved in the industry?

Insurance is a very lucrative industry today. Ten or 15 years ago people selected insurance as the last resort in their career. But today it's professionalised with agents having to obtain a licence which is good.

We see some young agents earning nearly Rs. 50,000 per month and it's very encouraging. I also observe a better acceptance for agents in the country. Some agents have risen to be Managing Directors and CEO's allover the world and this is also an encouragement for youngsters to get into the industry.

Q: How do you see the future of the industry?

Though the competition is very intense the future seems very bright. We have been maintaining our position as a niche player and our share prices have quadrupled in the last four months.

However last year was good for the company and would end 2007 on an even higher ratio.

Next year will be exciting and challenging.