Business Times

Insurance progress in North and East needs time

By Duruthu Edirimuni Chandrasekera

The insurance penetration in the North and the East will only pick up in time and not immediately, according to insurance industry experts. “It will take time. One should not expect a steep increase at once,” Manjula de Silva, CEO HNB Assurance told the Business Times. He said that in terms of life insurance, the people in these areas have other investment options open to them at present such as property, gold, stocks etc with which life insurance has to compete. “But earlier the only choices available were banks and insurance companies in these areas,” he said.

He noted that for general insurance, the stock of assets must grow. “More buildings should get constructed. More hotels and factories needs setting up and also more vehicles bought. When all these happen, general insurance business will pick up,” he said, adding that insurance penetration will increase in the North and the East, but not as rapidly as many people expect.

Dirk Pereira, CEO Union Assurance PLC noted that the penetration numbers are difficult to estimate. “But on the basis that most insurance companies are increasing distribution presence in the North and East we should expect to see these regions contributing to a growing share of turnover and profits,” he added.

Prakash Schaffter, Managing Director Janashakthi Insurance PLC said there is only 1% to 2% insurable public in those areas but the potential is there in time to come.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
New US GSP term amidst labour rights row
Mobile broadband to drive Dialog’s growth
Court reprimands MBSL chief Ratnayake over Ceylinco share issue
Hayleys sets up special leisure unit
Treasury guarantees billions of rupees in loans to state orgs
Eran quits, NDB appoints new CEO
Innovative advertising as mobile market battle heats up
Comment - Business with Jaffna: Walk before you leap
IMF loan suspension won’t affect Lankan finances
Why women are better investors than men
Economics of Poor Property Rights
'FH Studio Collection' to Czech Republic after Colombo Fashion Week success
Lankem to export agriculture crops
Ceylinco Shriram depositors to get relief
Jaffna trade fair to draw Indian exhibitors too
IT for 30 small businesses in remote villages
Jaffna BPO programme draws 4,000 students
GSP+ loss may result in South Asia becoming Lanka’s preferred partner – top economist
Corporate foundation appeals to politicians to ‘stop wasting money’
Easing trade, investment barriers can unlock South Asia's vast potential - report
Corporate response to sustainability insufficient
Windows 7 sells 30 million copies in 2 months
GSK completes acquisition of Stiefel in Sri Lanka
SMB to change name SMB Holdings
Virtusa holds ‘software testing festival’
SEC CEO Channa planning to quit
Kumar Sangakkara becomes Viva brand ambassador
350 undergrads attend Moratuwa University soft skills workshop
35 teams compete in 'CX Chinese New Year Challenge'
Commercial Bank profits grow despite tough 2009
Colombo Dockyard’s profit to stabilise
Govt. needs to cut deficit amidst rising inflation
Comprehensive Sri Lanka promotion in Europe launched in Brussels
Growth through Sri Lanka’s bond market
Issues over new ICASL President, PBJ as Chief Guest at inauguration
Ceylinco Insurance says over 65% customers ‘returning home’
Budget deficit above 2009 targets - report
Major Sri Lankan tourism campaign in New York
Janashakthi ready to exploit potential in North and East
Asiri to invest Rs 600 million in Matara Medi House
WaveNET offers 3G video calls to GSM
CCC trade mission to Indian cities
Audit firm KPMG re-starts Jaffna Branch
London Stock Exchange in new deal
IT industry body elects new board
Pioneering the web
Russel’s new outlet at APIIT
Insurance progress in North and East needs time
CBB helps drive business with Britain
Another eco-tourism property as Sri Lanka moves big-time in boutique hotels

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution