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By
Nizla Naizer
Allianz Life Insurance, a wholly owned
subsidiary of global insurance giant Allianz SE announced
plans to make early inroads in to the lucrative local
life insurance market in a bid to be placed among the
top five insurance providers in Sri Lanka.
Allianz received their license to operate life insurance
products on July 1 from the Insurance Board of Sri Lanka
and since their inception on the tenth of October this
year have sold 500 life policies.
Allianz Asia-Pacific, Middle East and North Africa Executive
Vice President, Heinz Dollberg explained the parent
company’s objectives at the press conference yesterday,
“We have always been in the top five ranks among
insurance companies whenever we operate in Asia and
Allianz Lanka has within three years obtained the fifth
rank despite heavy competition and an unexplored retail
market. We expect the same success from life.”
Allianz Lanka commenced operations in January, 2005
dealing with general insurance products focused mainly
on the corporate sector and within two years created
history in Sri Lanka by being the only insurance company
to have pure underwriting profits. The company achieved
a profit before tax of Rs. 53.2 million in 2007, a growth
of 257% from Rs. 14.3 million in 2006. The success of
the general insurance operation prompted Allianz SE
to look to the life insurance avenue. Allianz Insurance’s
success in neighboring India also made their operations
here more feasible
“Within a month Allianz Life Insurance has already
sold 500 policies with an accumulated value of Rs. 32
million,” Allianz Lanka CEO Surekha Alles. “Sri
Lanka has a huge untapped market for life insurance
with a penetration rate of 9.6% within the whole population
and 24% among the working population. We see great potential.”
“What we have achieved in the past speaks for itself,”
Alles stated, “And our value added products will
be unique and different to the existing insurance plans.”
Allianz Life insurance has currently initiated their
Universal Life Plan (ULP), which offers a higher return
on investment and gives the policy holder the option
of increasing the investment whenever he has more disposable
funds. “In step with global trends, we provide
a unique flexible plan, and our 300 strong sales force
have been trained and qualified in international standards
to identify their needs and capability and create individual
plans.”
Allianz ULP has a risk cover plan to meet adverse circumstances,
provides financial support in times of critical illness
and hospitalization and provides cash in hand in times
of need. Allianz Life Insurance is in the process of
developing the Universal Child and Universal Retirement
Plans to make it a comprehensive package for the entire
family.
Allianz is the only insurance company in Sri Lanka to
operate as two separate companies for life and general
insurance business in compliance with regulations proposed
by the Insurance Board of Sri Lanka. Currently concentrated
in Colombo, the company plans to open their first branch
in Kurunegala early December and move to six other locations
within the first year. “By expanding our operations
we hope to enter the retail general insurance sector
as well,” Alles informed.
Allianz Life Insurance is backed by the Munich, Germany
based Allianz SE, the world’s largest general insurer
which began operations in 1890 and has since then diversified
to asset management, banking and insurance. The Allianz
group has over one trillion euros in assets under management
and is listed as 19th in Fortune 500’s list of
top global corporations and has to iits name clients
such as the Petronas Towers, the Euro Tunnel and the
Palm Island in Dubai. In Sri Lanka Allianz Lanka has
insured some key structures such as the World Trade
Center, Colombo-Matara Highway and the Arugam Bay Bridge
to name a few.
Despite the global economic downturn, Dollberg remained
optimistic. “Allianz has a diverse portfolio focusing
on their core operations of asset management, insurance
and banking and so we are less vulnerable. We did not
take a part in the trouble initiating sub-prime market
which we were applauded for.” Even though their
Dresdner Bank had to be sold, Allianz reported profits
of US$ 6.5 billion for the 3 quarters of 2008 and that
according to Dollberg is a very encouraging figure.
“We also see Asia as a less affected part of the
world and our operations here, especially in China and
India is very strong.”
“We also see this as a way to contribute to the
development of Sri Lanka,” Dollberg said. “The
premiums collected will be reinvested in your country’s
government bonds and other ventures.”
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