Sithumina Jayasundara, Chief Executive of HNB General Insurance articulates the company’s vision to unlock the economic growth insurance nexus by focusing on innovation, research, customer centricity, and digital transformation with new-age technologies such as AI to improve customer experiences, internal processes and power analytics. As Sri Lanka advances from developing to developed status, insurance safeguards daily operations. According to Jayasundara, there’s an opportunity to increase insurance penetration in developing Asian nations.
Considering the economic growth-insurance nexus, how is HNB General Insurance positioned as a growth enabler?
In 2015, HNB General Insurance embarked on its journey as an independent entity, breaking away from its parent company, HNB Assurance. In just seven years, we achieved an impressive 6% market share, demonstrating our ability to diverge from traditional norms. Initially, motor insurance dominated our portfolio, comprising roughly 75% of our offerings. However, we’ve strategically realigned, adhering more closely to industry standards, with motor insurance now constituting approximately 53% of our portfolio, allowing us to diversify into other product categories.
Our unwavering commitment centres on innovation, research, and staying at the forefront of addressing market needs. This dedication culminated in a significant milestone in 2021 when we unveiled our strategic vision, branded “Let’s Reinvent Everything to be the Fifth in Five.” Our clear objective is to secure the fifth-largest market position within five years, aiming for a market share exceeding 10%.
To realize this ambitious goal, we’ve focused on four core pillars: Building Confidence – Our top priority is enhancing trust among stakeholders through consistent growth and outstanding performance; Streamlining Processes and Procedures we’ve refined our internal processes to ensure the delivery of top-notch services to our customers; Digital Transformation Integral to our strategy is embracing cutting edge technologies, enhancing our service offerings and operational efficiency, and; Service Differentiation – Setting ourselves apart in the market, we offer unique and tailor-made services that cater to the specific needs of our customers. Our strategic pillars, therefore have not only helped us achieve our ambitious goals but also enabled us to adapt and thrive as a young company in an ever-changing industry landscape.
As we slowly but steadily settle into an era which follows an economic crisis, as we’ve never experienced in the past, we’ve observed rapid shifts in customer behaviours and needs. Recognizing these changes, we’ve introduced innovative products and initiatives. For instance, during the fuel crisis, we launched comprehensive insurance coverage for bicycles, enhancing affordability and flexibility in our motor insurance offerings.
Another notable initiative is our 3-in-1 offering within our MotorGuard policy. This transformative addition arises from our deep understanding of our policyholders’ evolving needs, providing additional home insurance coverage in the event of a fire and a personal accident alongside their motor insurance policy. Furthermore, our MotorGuard policy offers a range of other benefits, including coverage for lease payments during extended vehicle repairs, a significant cash grant for the education of the policyholder’s children in the unfortunate event of an accident-related demise, a unique No Claim Bonus Match for a second vehicle, taxi allowances for alternative transportation needs, and emergency expense coverage for situations where the vehicle becomes immovable post-accident.
In the realm of digital transformation, we’ve introduced an innovative solution called Claimee, designed to expedite the claim processing procedure. Our partnership with DigiEye which enables Claimee, offers absolute convenience to our customers, where they no longer need to endure the hassle and stress associated with road accidents. With a simple phone call, they can initiate the claim process within minutes, streamlining the entire experience.
How is HNB General Insurance planning to strengthen the nexus between insurance and economic growth?
I firmly believe that insurance, much like finance, is the cornerstone of a thriving economy. Our mission is to catalyze this growth by providing comprehensive coverage across all segments, from individuals to businesses of all sizes. Our commitment to this objective is evident in our product portfolio, which has transcended the dominance of motor insurance.
We eagerly explore niche markets, such as cyber insurance, in response to increased digitalization post-Covid. As pioneers of parametric insurance in Sri Lanka—an index-based coverage—we showcase adaptability to global trends. For instance, we’ve introduced quality based insurance for perishable exports, like vegetables and fruits. Our unwavering dedication to leveraging new technology is reflected in continuous investments in artificial intelligence and analytics, recognizing their immense potential for future growth by deploying these technologies to augment our actuarial capabilities.
In Sri Lanka, where many insurers rely on external actuarial support, HNB General Insurance stands out with an in-house actuarial team, a key infrastructure strength. A decade ago, risk assessment relied on intuition, but the landscape has shifted to data-driven decisions. Our actuarial team ensures precision in pricing, efficiency in service delivery, and a data backed perspective.
If I were to single out one factor that drives our company’s success, it would be ‘our people!’ Our talented team, from the sales force to dedicated back-office teams, is our most valuable asset. Despite the many challenges we faced over the past couple of years, our dedicated teams have driven our growth well beyond the industry growth rate. In 2021, the industry grew by 2.8%, while our company grew by 13%. In 2022, the industry grew by 12.6%, while our company grew by 22%. To out perform the industry growth rate and record such significant numbers, I believe is a remarkable achievement, especially considering the economic uncertainty and constant disruptions. This is a testament to the hard work and dedication of our teams, as well as the strength of our business model.
The recognition and prominence we’ve gained in the market also underscores our hard work, innovation, and unwavering commitment as a team. As a result, we’ve become the preferred choice, particularly among corporate clients, shifting the paradigm from multinational insurers to HNB General Insurance.
What is your vision for HNB General Insurance?
As CEO of HNB General Insurance, I envision a future beyond dominating the Sri Lankan market. Our goal is to expand internationally, leveraging the strength of the HNB brand. This vision extends beyond organic growth; we’re open to strategic partnerships, strengthening our position in the insurance industry. We’re excited about opportunities arising from the Colombo Port City development, recognizing the pivotal role of insurance in economic activities. Supported by world class reinsurers globally, from the UK to Singapore, India, Dubai, and Bahrain, we’re well-equipped to fulfil this vital role and achieve our goals.