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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Insurance industry will play major role

Insurance industry will play major role

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1Insurance industry will play major role Empty Insurance industry will play major role Sun Jan 27, 2013 8:06 am

Jeremy

Jeremy
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
The insurance industry is expected to play a major role in the backdrop of a vibrant economy and the regulatory changes to be introduced shortly will further fuel the industry's growth momentum.

“We see great opportunity in moving forward and need to concentrate on changes in the social environment to upgrade and introduce new products.

The country will soon have an ageing population second only to Japan. This gives space for new thinking and insurers need to help address this issue,” Sri Lanka Insurance Association, President, Ramal Jasinghe told Sunday Observer Business.

The benefit of having an insurance policy in the absence of a social protection net is important as the tendency to be exposed to natural perils is high at present. “We need to create awareness as insurance is a need in today’s context. The set up of a global re-insurance fund augurs well for the industry,” he said.

The country has insurance penetration of less than two percent of GDP and there is immense scope for the industry.

The industry needs a greater degree of credibility and professionalism needs to be high to attract potential insurers. It is the national duty of all stakeholders to promote young talented persons to embrace insurance as a career to capitalise on the expanding financial service portfolio.

Insurance has emerged as a sustainable method of financial security and its benefits should be highlighted to increase penetration levels, Jasinghe said.

http://www.sundayobserver.lk/2013/01/27/fin02.asp

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