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BoC Assurance – the power of innovation with over 7.5 million clientele

By Gayani Perera

With the aim of providing exceptional commercial banking services to customers from a one stop shop rather than various places, the Bank of Ceylon, (BOC) bankers to the nation and a giant in the sector joined hands with State owned insurance giant Sri Lanka Insurance Corporation (SLIC) to facilitate Insurance needs of bank's customers through its branches.

"Our mission is to fulfill the expectations as well as the general and selective needs of our customers by offering a range of innovative banking and financial products and services, with speed and efficiency by using the most modern technology," said Sam Samarasinghe Bank of Ceylon Deputy General Manager, Product Development and Branches, in an interview with Free hold section of Sunday Times. The BOC in partnership with Sri Lanka Insurance provides the flexibility and convenience of banking and insurance at 45 branches countrywide under the first phase of this initiative, he added. It will be expanded to 307 bank branches and 160 extended offices through their network.

Exchanging of MoU between Chairman BoC Dr.Gamini Wickremasinghe and MD Sri Lanka Insurance Mohan de Alwis
Signning of the Insurance agreement between BoC Chairman Dr.Gamini Wickremasinghe & Sri Lanka Insurance Corporation MD Mohan de Alwis

Presentation of appointments to Insurance employees enrolled in BoC Bank branches by Sam Samarasinghe Bank of Ceylon Deputy General Manager, Product Development and Branches

Sri Lanka Insurance provides the flexibility and convenience of banking and insurance.
Insurance is a vital need in today's society, yet Sri Lanka has very low life insurance penetration of around 10.9 % due to low awareness levels, he revealed. Mr. Samarasinghe said "We hope that through this partnership we will empower more Sri Lankans with the freedom and convenience of being insured". A batch of forty five insurance agents have already been trained and they will e deployed at BOC branches to meet the insurance needs of bank customers , he said.

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. BOC Assurance offers a wide array of insurance solutions which are made available to the bank's valued clientele via BOC branch network. BOC Assurance is in operation at their 45 branches currently and the bank look forward to enhance its penetration to all of their main branches.

'BOC ASSURANCE' will offer a number of life , motor & fire insurance plans which offers superior benefits, security, and greater convenience to customers.

Among the many life insurance plans in offer is the "BOC ASSURANCE YASA ISURU" which offers periodic advance cash payments before maturity of the policy. This will be of assistance to meet many financial needs like starting a professional exam, spending for a wedding, doing a house renovation or even go on an overseas tour with loved ones.

The "BOC ASSURANCE DIVITHILINA" provides a flexible solution for those who need comprehensive protection at an affordable premium. This is an ideal plan for many people who are in search of future security & safety for themselves and their families.

Sri Lankan children will get the necessary financial support when they need it the most under BOC Assurance -Minimuthu Children's plan. The Bank has also introduced the BOC Assurance -Praguna high returns plan giving financial protection to local families .

Apart from the many Life insurance solutions on offer BOC Assurance will also offer Motor and Fire Insurance providing easy access and superior customer service to the clientele. All BOC ASSURANCE life, motor & fire insurance plans are issued and underwritten by Sri Lanka Insurance, the country's largest state owned insurer with the largest life fund in the insurance industry and the largest managed asset base.

" We believe our entry into bancassurance is another vital step towards providing diverse financial solutions to the Sri Lankan market. As a long-standing, trusted partner in Sri Lankan peoples' lives, we can help taking insurance to the masses thereby increasing insurance penetration in Sri Lanka. Now BOC's over 7.5 million strong customer base have access to a variety of insurance services at our locations dispersed all over the island."Mr .Samarasinghe said.

The market structure of the insurance industry is favourable for the policy holders and potential customers where large number of players competes for a growing market share. The insurance industrialists need to focus their attention in market segmentation for better performance, he added. He disclosed that the insurance penetration has marginally increased last year compared to the year before from 10.4 percent to 10.9 percent.

Insurance penetration in the country is low compared to many industries, due to lack of awareness of its importance and benefits. Unlike in the banking sector, insurance products are sold through agents who need to convince people to buy a product. Insurance agents should be honest and skilled to market the products authentically he observed.

According to official data, industry gross written premium (GWP) income of long term insurance grew 31 percent year on year to Rs. 31.15 billion in 2010, while general insurance GWP generated 12 percent on year growth to reach 37.3 billion rupees, with the restoration of peace ending the three decade war in the North and East , the BOC is highly optimistic on the growth of the insurance industry. To continue growing faster than the rest we feel we need to come up with something different, Mr . Samarasinghe said. He disclosed that the bank will introduce new and innovative insurance products including health insurance very soon. "Notably, the growth has been supported by the general improvement in macroeconomic conditions", Greater penetration in the Northern and Eastern regions of the country is also predicted to help the Industry in the longer run, he revealed.

Understandably Western Province has the largest level of insurance penetration but despite the establishment of many branches island-wide by insurance companies the popularity of insurance remains nominal. However Mr.Samarsinghe pointed out that this can change easily if more people are brought into the fold. This can be easily done by the BOC which has the capacity to provide benefits of insurance, among its 7.5 million strong customer base he said. No other financial institution in Sri Lanka has this power of cliental he emphasized. The industry is also stressing on the need for people to understand the policies that they are purchasing and admitted that there needs to be changes in terms of returns since banks can provide more returns. "However insurance guards against risk. A bank can give you higher interest but if you die suddenly the bank is not going to take care of your dependents," Therefore bank customers should rethink about getting an insurance cover in addition to their financial transactions with the bank. he said.

Sri Lanka has a long history in insurance which could be traced back to the colonial era. The insurance industry was a monopoly of the state for over 40 years and today the industry comprises 18 companies. The insurance industry was privatised in the mid 1980's and since then a large number of companies were formed offering either Life or General insurance products. He said insurance products are sold, not bought. Awareness on the need for insurance will generate interest and move people to buy products.
"Life insurance penetration is low compared to General insurance due to the absence of tangible benefits. A larger percentage of the population is aware of the benefits of General insurance, particularly motor insurance", he said.

The changing socio-economic demographics across the world have redefined the goal of insurance as not only a risk armour but also as a disciplined savings instrument. Sri Lanka Insurance with over 49 years of experience, expertise & knowledge acquired from Sri Lankan market and with the government protection has the capabilities to offer the right insurance solutions, with a local flavour to the many expectations of the Sri Lankan consumer.

Bank of Ceylon, the nation's premier state owned commercial bank counts over 70 years of fruitful service to the nation of Sri Lanka and its people. It has evolved continuously over the years by expanding its presence, enhancing its business operations, widening its product range and changing its strategic focus to transform its status as the largest financial service provider in the country. BOC's real time online branch network covering the length & breadth of the country includes over 750 service points locally and has presence in foreign capitals such as London, Male, and Chennai. Bank of Ceylon is the market leader in almost all spheres in banking including corporate and retail lending, inward remittances, NRFC deposits, treasury operations, etc. As highlighted by the recent Financial Statements it stands on a sound footing with a Rs 730 billion asset base and made a profit before tax of Rs. 10.98 billion. BOC enjoys Fitch AA (lka)/Stable Outlook by Fitch Ratings Lanka Limited and the highest ranked Sri Lnakan bank in the Bankers Almanac. Brand BOC is rated as the Most Valuable Brand in Sri Lanka by Brand Finance Lanka with a brand value over Rs 14 billion.

Sri Lanka Insurance claims the position of the largest and strongest composite insurance provider in Sri Lanka ,with an managed asset base that stands at Rs. 88 billion, over Rs. 6 Billion in capital and a Life fund of approximately Rs. 50 billion. SLIC is backed with very strong re-insurance arrangements, a highly experienced technical knowledge base and the widest network across the country. Sri Lanka Insurance is the only insurer to be rated AAA by RAM Ratings for its long term claims paying ability, and is the first insurer to be assigned a global rating AA-(lka) by the FitchRatings London.

The company has also been awarded ISO 9001:2008 certification for correct governing and operational procedures in line with accepted global standards. At the recently concluded World finance Awards held in London, Sri Lanka Insurance was awarded "The Insurance Company of The Year 2010 in Sri Lanka", competing and winning against the best in the insurance industry in Sri Lanka.

Today Sri Lanka Insurance is being the benchmark for effective management and service excellence, in the Industry. Sri Lanka Insurance also recorded an incremental revenue of Rs 1.3 Billion at year end 2010 and recently invested US$ 63 million in acquiring the shares of Shell Gas Lanka Ltd and Shell Terminals which is now re-branded as Litro Gas.

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