Chandana L. Aluthgama, the Chief Executive Officer of Sri Lanka Insurance Corporation (SLIC), discusses the state of the insurance industry in Sri Lanka and how SLIC stays agile in a fast-changing economic climate. SLIC has prioritized demand generation, IT adaptation, investment optimisation, and a performance-driven culture while investing significantly in technology and innovation to provide its customers with the highest convenience and service standards. Furthermore, SLIC is committed to providing the most attractive returns in the market to its life customers by prudently managing the Life Fund, he avers in this interview. Aluthgama begins by explaining what he envisions for the country and the insurance industry.

The economy is at a crucial crossroads. What do you envision for the country and the insurance industry?

The insurance industry and the country have experienced tough times due to the pandemic followed by the worst economic crisis Sri Lanka has seen. The country witnessed a challenging macroeconomic outlook that impacted all industries and the country almost came to a standstill with businesses facing many challenges while engaging in their day-to-day business activities.

However, since the last quarter of 2022, we saw the country returning to some state of normalcy and businesses beginning to make positive progress. Also with the approved IMF’s extended fund facility (EFF), we can see positive sentiments among the economic activities of the country.

IMF comes with many reforms, however, it is an opportunity for Sri Lanka to rise from this disastrous situation. With the reforms in the economic policies and the implementation of the new policy framework, the economy has marginally stabilized. We need to quickly move up to the growth stage and gear the country towards performance. We need to be patient in these painful times and everyone will have to play a role in it.

We can observe that the economic outlook is at the brink of stabilization and can anticipate the relaxation of motor vehicle import restrictions towards the end of 2023 or early 2024 and more FDIs flowing into the country, both of which will have a positive impact on the General Insurance industry. Also, with the rise in medical bills, we see a demand in the health insurance sector and the current consumer is well aware of the risks and is open to investing in insurance for a secure future. Against this backdrop and the possible adaptation to the new normalcy, we see many opportunities for the Insurance industry.

In your view, what would the new economic model look like, and how will it impact the strategy of SLIC?

In my view, the new economic model will weigh more on sustainability. Adapting to an economy that is more competitive, open, green and digitized with an emphasis on the exportation of services and goods will be key, while the Government concentrates on public welfare and infrastructure development projects.

I also believe that, as citizens, a growth mindset is required for everyone to play a pivotal role in the economic activities of the country and to be ambassadors of a system reset, which is when we can achieve sustainable growth for the country.

SLIC embarked on a strategic road map in 2018 that is based on five key strategic pillars of Performance Driven Culture, Customer Centricity, Digital Transformation, Revenue Generation and Investment Optimization.

The heart of the strategic roadmap is digital transformation, which focuses on customer convenience and process efficiencies. We have moved forward in digitizing many projects and processes successfully.

We have also introduced a performance-driven culture with the implementation of KPI-based performance evaluations. I am happy to say that we have successfully implemented this scheme with the concurrence of our employees. Due to implementing the KPI evaluations across all cadres, we were able to realign and restructure our employment base for a more productive and efficient service output.

How are you unlocking opportunities amidst the challenging economic climate?

At SLIC, we constantly innovate our products to suit current trends and customer needs while leveraging technology to support convenience. Even though it seems that insurance is not a priority component in a Sri Lankan consumer’s need list, we have observed the trend of increased requirements in insurance during these recent uncertain times, thus making it a positive signal for the insurance industry. With the onset of Covid-19, we saw a rise in the demand for health insurance as well as specific insurance schemes such as the School Fee Protector, an innovation brought to market after we realized that many parents, with the COVID-19 pandemic and the economic pressures of inflation, were unable to afford the fees of private education. Similarly, new product opportunities are now open to support customers with long and short-term benefits. SLIC was also the first mover to introduce a senior citizen health product known as Medi 60. Many of the product offerings are digitized to bring an end-to-end convenience customer experience.

How important is innovation to SLIC, and why?

Innovation and change are the only constants for an organization that believes in continuous growth. Being in the business for over 60 years, we have been successful in moving from traditional processes seen in the industry to digitized environments with operations launched on online platforms. We were the first to launch a customer mobile application in 2018, which counts the highest number of registrations in the industry. We have also developed agency applications and upgraded our MIS systems to monitor business in real-time and to give our management the right information to keep innovating and to go over and beyond for our customers.

One such innovative solution is SLIC’s ‘Virtual Claim Inspection’ for motor accident insurance claims and after-repair inspection. Can you take us through the benefits and impacts on the business, customers, and sustainability?

We created a platform that requires drivers to verify their identity and record the accident before using the virtual claim inspection system to record accidents. The platform allows drivers to provide their KYC details and photos of the accident, speeding up the claims process. This will eliminate delays in contacting the call centre, and waiting for an assessing officer to visit the accident site. Our platform allows drivers to assess the damage themselves. After the assessment is completed the claim is settled to the driver directly within three hours. I believe this process will be highly convenient for our customers. We plan to expand this system to Life Insurance policies and explore AI to calculate costs and prices.

SLIC remains committed to staying resilient and intelligent, embracing change and driving progress. With every innovation, we push boundaries and challenge the status quo to provide insurance solutions for all citizens while providing exceptional customer experiences. As we continue to evolve, we are confident that our innovative solutions will lead us to new heights of success and growth.