Financial Times - Innovative products boost Ceylinco Insurance General profits

Innovative products in non-motor insurance sharply boosted Ceylinco Insurance’s General Division profits for the first quarter 2006, accounting for Rs 110 million of the Rs 125 million-profit reported.

The company said motor insurance made up for the balance contribution.

Remarkable growth in non-motor insurance saw the leading insurer’s premium income rise by 32% to a turnover of Rs 2.3 billion. The premium income from the motor and non-motor insurance categories was Rs 1,401 million and Rs 935 million both recording growth rates of 34% and 30% respectively, the company said in a statement.

“Our continuous innovation has proved that the non-motor insurance category has a lot of scope, especially when its packaged to make it convenient and affordable such as our One and Only insurance scheme that can be purchased at supermarkets,” said Ajith Gunewardena, Chief Executive Director – General Insurance.

However profits of Ceylinco’s VIP ‘On the Spot’ insurance which is the leading motor insurance scheme, was comparatively less during this quarter with Mr Gunawardene explaining that this was due to their commitment to providing unparalleled benefits to customers.

It is the only insurance policy that offers motorists a “Benz” for a “Benz” as replacement when customer repairs exceed four days. Its instant “On-the-Spot” claim settlement innovation in motor insurance in 2003 has paved the way for a new paradigm not just for its customers but the country’s motor insurance industry where other insurers were compelled to transform their services or be left out.

On the performance of the non-motor insurance category, Mr. Gunawardena said that meaningful innovation linked to consumer needs resulted in such a growth.

The company recently launched a Marine on the Spot insurance scheme for importers, as well as “One and Only”, a unique personal insurance scheme. The hassle-free “On the Spot” settlement innovation of the company over the years has been extended to health insurance and now marine insurance.

Its continuing innovation in the field of insurance also earned the Gold award for the Most Innovative Brand at the recent Sri Lanka Institute of Marketing Brand Excellence Awards.

The ‘One and Only’ insurance scheme has been launched with a concept of making insurance affordable and convenient to obtain.

Initially customers of Laugfs and Arpico chain of supermarkets are entitled to this scheme at a minimum investment of Rs 20 made along with their purchases. According to the purchases the cover is extended up to Rs. 1 million to cover permanent and partial disablement and even natural disasters to their homes. Over 250 outlets in the outstations were added to the “One and Only” network offering the benefit of this unique scheme to their customers.

The General Division has also been focusing improvements to its distribution network with an expansion of its branch network to every corner of the country including the North and East and improvements to its call centre and IT network.