HNB Assurance on capital expansion
Sanjeevi Jayasuriya
The market structure of the insurance industry is favourable for the
policy holders and potential customers where large number of players
compete for a growing market share.
Manjula de Silva |
The insurance industrialists need to focus their attention in market
segmentation for better performance, HNB Assurance Managing Director
Manjula de Silva said.
The insurance companies need to differentiate and this will lead to
efficient market penetration supporting customer perspective, he said at
the first ever investor forum of HNB Assurance held on Friday in
Colombo.
The segregation of life and general insurance businesses will enable
consolidation and thereby increase penetration. The insurance
penetration has marginally increased last year compared to the year
before from 10.4 percent to 10.9 percent.
It is important to change the mindset of potential customers
regarding the concept of insurance where stressing the fact that it is a
protection and not an investment.
Though an investment component is there, the core is a cover against
risk, he said.
The company has a capital expansion plan in meeting the Insurance
Board of Sri Lanka (IBSL) requirement and expect this to support faster
growth.
The capital infusion will be utilized in branch expansion efforts,
system upgrade and brand building.
The stated capital will be increased three fold from Rs 375 million
to Rs 1.17 billion when this expansion plan is in place, he said.
“The company’s main focus will be the retail and small policy holders
where higher return could be generated.
It is profitable to have this type of clients and we also will be
looking at corporate clients in a selective way to contribute to the top
and bottom line.
“We will emphazise on consistent performance in both top and bottom
lines and acceleration of growth momentum,” de Silva said. |