LOLC General Insurance, a fully-owned subsidiary of the LOLC Group
recently became Sri Lanka’s first General Insurance company to achieve Rs. 6 Billion Gross Written
Premium (GWP) in less than 10 years. The company reached the Rs. 6 Billion mark in December 2020,
becoming the fastest General Insurance company to achieve this milestone in the industry. LOLC General
Insurance CEO, Mr. Kithsiri Gunawardena talks of the many key attributes that helped reach this
achievement.
What were the main factors that helped LOLC General Insurance reach the 6 Billion GWP mark in less
than 10 years?
LOLC General Insurance is a young company compared to the rest in the industry.
During the last few years we continuously streamlined the processes and achieved greater
coordination between different units of the company. The entire staff was motivated to work as one
team and embark on a customer centric approach. A scheme was introduced whereby a pre-designated
percentage of the company profits are shared with our staff thereby elevating them to become true
stakeholders of our business. We also critically analysed our expenses and introduced mechanisms to
achieve greater efficiency and productivity. The combination of these measures and our aggressive sales
model supported by the commitment of our team resulted in the company being able to secure a substantial
volume of new business outside of the group reflecting that we are well aligned to the needs of the
market.
With a service first mind-set and the strong backing of the LOLC Group, LOLC General Insurance became
the fastest growing Insurer in the industry with the highest growth in Motor as well as Non-Motor
portfolios. This achievement was also made possible by the trust and confidence placed in us by our
customers throughout the country as well as the indispensable contribution made by our staff.
The aggressive approach in sales, flexibility in policy options and a customer centric product
portfolio has enabled this growth over the years. The company hopes to maintain the same focus,
approach and excellence in the years ahead to sustain this growth momentum.
How did the company manage to progress despite the pandemic in 2020?
Year 2020 was probably the most challenging year for most businesses in the country and the insurance
industry recorded a negative growth. Interestingly, LOLC General Insurance managed to record its best
performance during this year. Although external operating conditions remained challenging, the General
Insurance business performed steadily. Most disruptions create opportunities and we capitalised on
becoming even more aggressive when most others opted to be cautious. By December 2020, we were able
to reach the Rs. 6 Bn mark mainly because of the commitment of our team who were always geared and
motivated to offer uninterrupted services to the customers even during the pandemic.
What makes LOLC General Insurance different from the rest in the industry?
The aggressive business model, highly motivated and loyal staff, passionate leadership, unstinted
reputation within the market on service quality and last but not least the strong backing of the
LOLC Group is what makes us stand apart.
How do you view the opportunity and potential in the local market for General Insurance?
The opportunities are immense in the market. With a saturated Motor market and the challenge of
limited new registrations for the foreseeable future, the price and service will be key in this
sphere. The Non-Motor market is noticeably underpenetrated and this gives LOLC General Insurance
opportunities to grow with our unique products and services to customers.
What are your future expansion plans?
2021 will see innovations in terms of customer engagement with respect to digital transformation as
well as unique product ranges and service standards being introduced. By locating branches
strategically, the company is enhancing customer convenience. Our focus on accomplishing full
automation remains strong with the entire process automated end-to-end, from meeting the customer
to the point of delivery while policy servicing is achieved via technology platforms. The country-wide
reach will be enhanced with the formation of new regions/branches and close to 70 dedicated service points being established.
Any plans to venture into international markets?
With LOLC expanding into many markets in Asia and Africa, we too hope to expand the insurance services
and products to several selected and potential international markets in the near future. LOLC Group
has a very strong and highly respected brand presence in all the markets we operate. In some of these
markets, the Insurance industry is in the early stages of development. Thus, the regulators are keen
on the introduction of micro insurance products to support small and medium scale businesses for
systemic stability.