Aquinas offers top hospitality management programmes

The world is experiencing dynamic growth in the hospitality industry. This expansion of hotels and restaurants throughout the world has increased the demand for qualified and knowledgeable employees who are ready to excel in the world of lodging and food service.

The Aquinas-LCD Hospitality Management Programme provides the perfect start for students looking for a competitive edge in the hospitality industry of the world.

The Educational Institute (EI) is the training arm of the American Hotel and Lodging Association. The educational institute is known for developing the world's finest training and educational resources for the ever expanding hospitality industry.

Institute's role is to prepare dedicated individuals for hospitality career advancement, helping to satisfy the ever-increasing need for qualified personnel. Combining more than four decades of research and expertise of today's leaders, EI resources and qualified personnel are sought by industry leaders throughout the world.

London College Dublin, founded in 1999 has quickly become one of Dublin's leading business, hotel management and English language schools. Their panel of lecturers, trainers and staff are committed to meeting the academic and professional needs of the students. Teachers are carefully selected to nurture and develop a friendly and caring atmosphere that makes London College Dublin so special.

Aquinas College of Higher Studies was established by the late Very Rev. Fr. Peter A.Pillai in 1954 with the inspiration and assistance of the late Thomas Cardinal Cooray, OMI, the Archbishop of Colombo. Aquinas College is registered with the Tertiary and Vocational Educational Commission of Sri Lanka to conduct courses and examinations at the tertiary level. The college is also affiliated to the International Federation of Catholic Universities in Paris. Aquinas holds a pre-eminent position in the socio- economic life of the country.

Aquinas College is situated in parkland in Borella, located in the centre of the city of Colombo. The presence of students from many diverse backgrounds and nationalities provides a cosmopolitan community, creating an exposure to numerous cultures, as it has students from SAARC countries and various ethnic groups.

Aquinas is proud to have a considerable number of Buddhist monks and students from all religions and ethnic communities among its student population of over seven thousand . In 2004/5 Aquinas College of Higher Studies was awarded the status of a Degree awarding institute by the University Grants Commission of the Government of Sri Lanka

The American Hotel & Lodging Educational Institute is the world leader in hospitality education and training. Students who successfully complete these courses earn globally recognised certificates from the American Hotel & Lodging Association.

Educational Institute courses are developed with input from hospitality industry professionals and reflect the most current industry practices and trends. Employers know that students who have completed EI's hospitality management courses are well prepared to handle supervisory responsibilities and be a valuable addition to their staff.

Career advancement in the hospitality industry happens quickly for those who have the knowledge and skills taught in a programme like the one offered by the Aquinas Faculty of Hospitality Management.

The hospitality industry has a long history of promoting from within, and stories abound of people who have risen from the ranks of entry level employees to become general managers, corporate executives, or owners of their own properties. According to one research study, the average hotel general manager worked in the industry for two years before becoming a department manager, and another seven before becoming a general manager.

The hospitality industry provides a wonderful direction for students seeking a career focus for their area of interest. With more than 200 different job opportunities, the multi-billion dollar hospitality industry has a career to fit every interest. Hotels and restaurants need sales and marketing professionals, accountants, engineers, human resource specialists, chefs, security directors and managers for every service department from front office to housekeeping.

Aquinas Faculty of Hospitality works with students to develop an educational path that's right for them.

Aspirations 2008 Intl. Education Exhibition 

Aspirations Education is organising yet another international education exhibition to cater to the increasing number of students who are on the lookout for studies abroad. 

Representatives of highly reputed universities and institutes of Australia, UK, USA, Malaysia and Singapore are scheduled to participate at this exhibition, which will be held on  July 5-6 at the BMICH Committee Room B and on July 8 at Queens Hotel, Kandy. 

Students will be made aware of the various opportunities and options available at all levels in the different fields of study. This will also be a rare opportunity for students to get an in depth knowledge with the first hand information they get in specialised areas they intend pursuing and even obtain spot offers if they possess the required qualifications.

Education in Sri Lanka today is a major issue not only to the state but to students and parents as well.  In the not so distant past, students could plan out their future on passing the A/L exam and entering university to complete the degree.  After graduation, it was plain sailing for them to secure employment in the qualified field. 

Over the years, the entire scenario has drastically changed causing much hardships and heart burn to both parents and students.  One cannot be sure of entering a university despite obtaining the required marks, as everything depends on the number that can be accommodated in the state universities. This was to be expected with the unprecedented number that sits for the A/L exam and even the increased annual intakes have failed to cope with the situation. 

The problem of unemployment is aggravating day by day as the country has failed to meet the demand to supply the existing job market.  Universities have over the years, produced graduates who cannot fit into the available posts. 

Further, there is no proper career guidance service to direct students to fields where ample vacancies exist for qualified people in specialised areas such as IT.  Parents are compelled in the present context to look for study options abroad and in most instances just after O/L or A/L.  Further there is a marked increase in the number who opt for post graduate studies in foreign universities due to lack of proper opportunities in our own country. 

Foreign universities and institutes on the other hand have tailor made courses to encourage and absorb international students.  It is needless to emphasize the ideal conditions offered by them for academic studies as well as the state-of-the-art facilities provided with respect to accommodation, health care, sports, recreation, welfare, etc.

Their holistic attitude and facilities help to bring out the innate talents of students to excel in the different fields while opening the best possible avenues for successful employment with attractive salaries.

Students who aspire to study abroad have to depend on the information provided by career guidance counselors.  They should be able to get accurate and authentic information with regard to options available.  These will help students with lower costs, increased chances of university acceptance, cultural adaptability and even increased chances of financial assistance.

This may also improve the student's profile to obtaining visas and most of all enhance career opportunities in today's global economy.  Proper counseling in the areas of both education and careers help students pick the university that best meets their needs as well as maximise the chances of financial assistance and career placement opportunities. Unfortunately some career guidance services do not seem to be doing their best to these students, as expected of them.

Aspirations Education is unique both in its attitude and approach to career guidance. Each case is taken separately on its own merits and studied thoroughly to give feasible solutions.  The meticulous attention given to each individual case is the secret of their success which is seen by the record number of visa approvals it has obtained from the countries concerned, within a comparatively short period. 

Aspirations Education represents over 100 universities and institutes in Australia, UK, USA, Malaysia, Singapore and New Zealand giving  students the widest choice to select in keeping with their interests, aptitudes and financial status.  With their dedicated and efficient staff,  the service they give is truly incomparable and most of all when all services are given absolutely free of charge! 

NAFLIA - a roaring success yet again

The much anticipated second National Forum for Life Insurance Advisors (NAFLIA) was held recently at the Waters Edge. The unique event has been hailed for bringing together the best insurance advisors in the country.

NAFLIA is the brainchild of the Insurance Association of Sri Lanka (IASL) and is aimed at further improving the life insurance industry.

Speaking to The Sunday Leader Chairman, Insurance Board of Sri Lanka, Dr. Gamini Wikramasinghe stated that the event not only brought together the cream of the life insurance industry, but was also a unique learning experience facilitating the exchange of ideas.

He stated that the forum was a novel concept that would promote improved understanding within the industry and better servicing.

Dr. Wikramasinghe also noted that the turnout of over 600 participants was reassuring and viewed the increasing level of young people taking up the profession as a positive factor. 

"Life insurance professionals have played a major role in the development and popularisation of the life insurance business in the country but we still see an immense untapped potential which exists within the sector," said Dr. Wikramasinghe.

He added that insurance is a growing industry reflecting solid growth rates.

Meanwhile President, Insurance Association of Sri Lanka, Jagath Alwis stated that the forum was patronised by not only local insurance professionals but international presenters as well, creating a comprehensive knowledge pool for the participants, some of whom represented the north and east of the country.

"The re-insurance giant Munch Re, Insurance Board of Sri Lanka as well as the Sri Lanka Insurance Institute supported this endeavour and this year the forum was conducted under the special theme 'Pledge For Life' and all insurance companies sent their best to take part in this forum which was an ideal opportunity for them to exchange their views and common concerns. We also plan on making this an annual event where the cream of the industry will meet once a year," said Alwis.

Explaining the 'Pledge For Life' theme, Alwis said that it would comprise a code of conduct that an insurance advisor should adhere to. He also said that the organising committee hopes to someday make NAFLIA a regional event.

Chairman, Organising Committee, NAFLIA, Rukman Weerarathne stated that the most important aspect of the event is that it provides a forum for discussion on many aspects of life insurance advisors' responsibilities and to share the knowledge gained from the field.

"We've seen a strong commitment shown by the turnout this year at NAFLIA and that is truly remarkable. In years to come we know that events like NAFLIA will only continue to help the insurance industry further strengthen itself and reach greater heights," Weerarathne said.

Janashakthi growing at a rapid pace

With the Janashakthi IPO oversubscribed in double quick time The Sunday Leader met up with Managing Director, Janashakthi Insurance, Prakash Schaffter to catch up on the latest developments.

By Kshanika Argent

Q: How successful was the recent share offering ?

A: We were 4.5 times oversubscribed and announced the closure within three hours of opening.

The IPO was a resounding success not only from Janashakthi's perspective but also from a national point of view.  The share market as we all know has been extremely dull over the last 24 months.  This should surely give a fillip to the stock market and will hopefully be the beginning of a revival.

Q: How has been the company's performance in the first five months of this year (in terms of revenue and profit after tax)?

A: The company's performance in the first five months of this year has been up to the expected levels.  In terms of revenue we are just short of our budgeted revenues but this has to be viewed in the light of an increased emphasis on bottom line performance which has resulted in shedding some classes of business which we viewed as being unprofitable.  As far as profits are concerned I am not in a position to comment as we are now a public listed company other than to say that it is in line with expectations.

Q: There is a theory that insurance, particularly life insurance has been growing in recent times due to the country's volatile situation.  Your comments?

A: I am not aware of any theory that life insurance grows in times of volatility. In fact it is quite the opposite. During periods of economic instability (high inflation) life insurance is more often than not the first casualty.  People who are struggling to make ends meet, especially in emerging economies such as ours often tighten belts by lapsing their existing life policies.  There is also a greater reluctance on the part of people to take out life policies at times when they are unable to meet their daily requirements. 

Q: Life insurance penetration is said to be at 10%.  What is Janashakthi and the industry at large doing to increase penetration?

A: There is really no reliable figure available that indicates the extent of life insurance penetration.  But one thing I am sure of is that there is scope for greater penetration in this country. 

Janashakthi has made efforts  to increase the current level of penetration by recruiting large numbers of agents and other permanent sales staff. We currently have a field force of 3000 who are dedicated to selling life insurance.  We also invest a considerable sum of money  in training our field force to sell life insurance.  

We not only teach them the art of selling but  also the art of selling according to people's needs.  At a macro level it is the industry body which is endeavouring to popularise the concept of life insurance nationally. 

Q: In the context of high inflation in the country, how do you expect insurance to grow when people are finding it hard to make ends meet ?

A: This is what I just outlined - during times  of economic uncertainty people do not have the money to make ends meet and are therefore reluctant to take out life insurance in such a scenario.

Q: What is Janashakthi's position in the market ?

A: Janashakthi is currently one of Sri Lanka's leading insurers.  Our net asset worth exceeds Rs. 2.1 billion which is well in excess of the proposed 2012 capital requirements set out by the Insurance Board of Sri Lanka.  We have consistently delivered profits to our shareholders and have exceeded a figure of Rs.500 million both in 2006 and 2007.  We are also one of the fastest growing companies and have rapidly expanded our market share over the years. 

Q: Where does Janashakthi stand with regard to the new IBSL capital requirements ?

A: The Insurance Board of Sri Lanka has indicated that it will be revising the current minimum capital requirements of insurance companies.  This is I believe to keep pace with inflation which has taken place over the years as well as  to further build on the security that insurance companies provide their customers. 

The Insurance Board of Sri Lanka has proposed a capital requirement of Rs. 1 billion for composite companies in the year 2012.  We exceeded the 2012 requirement in 2007.  A reflection of the financial strength of Janashakthi.Q: If such a mandate comes into effect splitting insurance companies in two, what is Janashakthi's position?

A: The industry has been making representations to the Insurance Board on the necessity to refrain from splitting the insurance companies.  We are hopeful that the Insurance Board will realise the negatives of splitting current insurance companies and will review their current position.  

Q: Why should people opt for life insurance instead of saving in a bank?

A: Life insurance is a form of protection.  It is a means whereby a family can ensure that in the event of the death of a bread winner they are financially provided for. Life insurance could combine an element of saving as well and in many cases does so. In the case of bank's however, life insurance cover is not provided and they are pure savings instruments.   Only registered insurers can provide life insurance.

Q: What are Janashakthi's plans after the share offering?  

A: We have been quite clear on the reasons for raising fresh capital from the public and have consistently enunciated this at all times.  There is no change as far as we are concerned.  Our plans for the funds raised by the  IPO is to expand our branch network as well as our field sales force.  We will also further improve our brand visibility by means of above the line and below the line campaigns.  All in all, we want to expand aggressively on the base that we have built up in our initial years.

Q: When will trading begin ?

A: I believe that trading will begin around the third week of July.

Q: What are Janashakthi's targets for 2008 ?

A: Janashakthi has set relatively ambitious targets for 2008.  We have based on past performance and current market conditions set ourselves  ambitious sales as well as bottom line targets.  The one major change at Janashakthi that has taken place gradually over the last 12 to 18 months is the much greater emphasis on bottom line delivery as opposed to top line delivery. 

Q: How many branches do you have ?

A: We currently have 115 branches and it is our plan to open branches in selective locations based on the business potential that exist in that area.

Q: Are there any alternatives to expanding than opening more branches ?

A: I would not wish to use the term alternatives to opening more branches but rather state that there are complimentary methods of expanding business.  Tie ups with banks or bancassurance as it is more commonly known is yet another way of expanding our business.  The growth of the internet too will in the future serve as an important means of transacting insurance business. 

Q: How many people do you employ ?

A: We currently employ  2,250 staff. Over 50% are field sales employees who are out on the field canvassing business.

Q: What are Janashakthi's future plans ?

A: We have over a space of 14 years built a successful and viable business entity.  We have a long history in the insurance business which even precedes Janashakthi and our plan is to build on the achievements of the past , to continue to do what we have done but to do it better and faster giving stakeholders, both investors and policyholders superior returns.

Participants will gain valuable experience

Eleven from Sri Lanka Insurance to attend MDRT in Ontario

Sri Lanka Insurance with 46 years of experience serving Sri Lankans around the island, has had 11 of its outstanding performers selected for the prestigious Million Dollar Round Table (MDRT) Annual Meeting to be held this year from June 22-26 in Ontario, Canada.

Membership at MDRT is the highest association that a life insurance professional could aspire to reach. 

More than 6000 members from different areas of the United States and more than 60 countries participate annually to share ideas, adapt to new perspectives and take home with them a priceless experience that inevitably enables them to serve their customers and their employees even better.

This interaction between the 'cream of society' in the financial and life insurance services in the world is a tremendous milestone in one's career as it serves to improve customer commitment, professional knowledge and strict ethical conduct.

Despite the low penetration in the insurance market in Sri Lanka the competition has steadily increased and service providers are constantly seeking new methods to offer a better and more comprehensive service. The MDRT is one such opportunity to be in touch with all the modern technicalities of the profession with the sharing of expertise on advanced sales ideas, technical information and motivational concepts.

CEO-Life of Sri Lanka Insurance, Suresh Paranavithana commenting on this achievement said "I congratulate all members of the Sri Lanka Insurance team who are participating at this year's  MDRT. The experience the team gains  from participating and being acknowledged as a prestigious member of MDRT is priceless  and acts as a momentum to motivate and inspire each and every individual. With the learning experience, these members extract a mammoth amount of professionalism, excellent selling (insights) and knowledge but above all they adhere to a strict Code of Ethics."

The 11 participants from Sri Lanka Insurance includes N.G.D.Nissanka, V.Nandakumarm, A.Sivakantha, M.M.S.K.Nawaratne, M.Ravi, K.N.Indika, S.M.M.G.Subasinghe Banda, W.P.W.Wijayamohan, E.S.Fernando, P.M.Balasuriya, and K.Sivapathasundaram               

Sri Lanka Insurance is the largest and strongest composite insurance provider in Sri Lanka, with over Rs 58 billion in assets under management, over one million policies in force and an average claims settlement of Rs. 21 million a day. The company also claims the largest life fund in the insurance industry which is Rs. 38 billion.

Sri Lanka Insurance is the first insurance company in Sri Lanka to be assigned a global rating for financial strength and stability from a world renowned rating agency. The company received the AA-(lka) from Fitch Ratings London for the third consecutive year for financial strength and stability.

Zero drownings in Anuradhapura this Poson; three lives saved

Eagle's 15th Poson Safety Campaign a great success

This year's Poson season recorded the rescue of only three persons from drowning, a great reduction in the need for rescues and zero drowning-related deaths among the approximately one million pilgrims who visited the sacred city of Anuradhapura.

Eagle Insurance conducted the Poson Safety Campaign for the 15th consecutive year with the support of the Sri Lanka Police, Navy and the Life Saving Association by utilising 630 professional lifeguards. The lifeguards of the Life Saving Association, who saved three individuals are, L.M.G.S. de Mel, K.M.A. Chamith Wasantha, Manjula Dinesh Bandara and Yaminda Chamil.

The focus of the campaign was to safeguard the lives of devotees from drowning when bathing in nearby reservoirs. Eagle initiated a massive public awareness campaign prior to and throughout Poson to advice people against using unsuitable bathing places and highlighting the need to act with extra caution when bathing in tanks.

Large billboards and warning signboards indicated unsafe-spots that should be avoided for bathing while guiding pilgrims to safer bathing areas. Leaflets, in both text and picture-form, were disseminated on practical information  about maintaining proper safety procedures; and about 100,000 fact-sheets were distributed near major tanks and at official-monitoring terminals at selected locations before entering Anuradhapura.

In 1993, Eagle in collaboration with the Life Saving Association, Police Department and the Navy initiated the Poson Safety Campaign, which has continued ever since. This project has helped in reducing the rate of drowning during the Poson season to nearly zero. Through the committed efforts of Eagle, this campaign has so far helped rescue more than 128 pilgrims as of 2008. Last year, during the campaign nine pilgrims were rescued.

The Eagle Poson Safety Awareness Campaign is part of the company's comprehensive CSR strategy. At Eagle, being ethical and socially responsible is a way-of-life and is a fundamental core value of the company, which Eagle champions ardently, a statement said.

China's insurers may pay $290 million in quake claims

China's insurers may pay 2 billion yuan ($290 million) in claims from the nation's most powerful earthquake since 1950, analysts say. That's less than 1 percent of their premium income in the first five months of 2008.

"Earthquake claims should be absorbable," said Standard & Poor's analyst Connie Wong in Hong Kong. The bigger concern is this year's 46 percent slump in the benchmark CSI 300 stock index, she said.

Profits at China Life Insurance Co. and Ping An Insurance (Group) Co., the nation's biggest insurance companies, may decline because of the drop in equity prices, and as claims from the earthquake and the worst snowstorms in 50 years during January continue to mount, Wu Dingfu, chairman of China's insurance regulator, said last month that insurers must "become more vigilant than ever about controlling risk."

BNP Paribas SA doubled its estimate for insured claims from the earthquake to 2 billion yuan after the industry's regulator prodded companies to make "goodwill" payments that may not technically be covered under policies, said Dorris Chen, an analyst at the Paris-based bank in Shanghai. The estimate is equal to 0.4 percent of Chinese insurers' January-to-May premiums.

"There're a lot of ambiguities about what is covered and what isn't," Olive Xia, a Core Pacific Yamaichi analyst in Shanghai, said.

The $290 million in estimated claim payments is only 1.5 percent of the more than $20 billion of damages from the quake estimated by a China Insurance Regulatory Commission official.

The May 12 earthquake, the most powerful to hit China since a magnitude 8.6 quake struck Tibet in 1950, killed 69,181 people as of June 22 and injured 374,171, China's official Xinhua news agency reported. The country's seismology department said the Sichuan quake had a magnitude of 8, while the USGS put the magnitude at 7.9.

China Life, the nation's biggest insurer, has said it may pay 230 million yuan in claims from the May 12 earthquake. The cost would equal 0.2 percent of the company's 151.5 billion yuan of premiums in January through May. The Beijing-based insurer may eventually pay up to 700 million yuan, Xinhua said.

Life insurers will face larger claims since their policies include earthquake coverage, while most property policies do not, said S&P's Wong. China Life may face most of the life insurance claims, Wong said.

Professionalism the theme behind Asian Alliance Insurance

Asian Alliance Insurance (AAI) which over the last eight years achieved several important milestones, has comfortably become an intrinsic part of Sri Lankan life, winning kudos from the public as a completely professional organisation, offering tailor-made insurance solutions to a discerning clientele. AAI has achieved this success through understanding the unique needs of individuals and offering insurance solutions that is best suited to them.

According to Assistant General Manager - Marketing, Asian Alliance Insurance, Nadi Dharmasiri the company fully deserves the accolades it receives, as she firmly believes that Asian Alliance Insurance has perfected the art of providing a professional service, along with insurance solutions that are intuitively geared to suit the needs of a discerning public, representing multitudinous walks of life.

Recalling the historic milestones of mankind and the outstanding and dynamic people behind them, Dharmasiri indicated that such achievements have been the result of a "great combination and a perfect partnership," which resulted in unprecedented changes in the way we live.

In this vein, she recalled the achievements of the inventor of the telephone - Alexander Graham Bell, who had the firm support of A. Watson; the first conqueror of Everest - Sir Edmund Hillary, who was unconditionally aided by Tenzing Norgay ;  and the King of the skies - Orville Wright, who had Wilbur Wright standing right behind him!

She pointed out that all these amazing achievements were the result of "perfect partnerships," adding that Asian Alliance Insurance sought to be just such a partner to its clientele in the modern era. "We represent this platform, as the base upon which these extraordinary partnerships were built, - which is explicitly explained in our current advertising campaign line, 'Great Truth. Great Trust. Great Partnerships.'"

Asian Alliance Insurance renowned as an innovator of insurance solutions, which are more suited to public needs, and tailor-made to suit their wants, is in the process of introducing unconventional insurance channels to the public using new technologies such as the internet, SMS and also Over the Counter (OTC)  insurance products  through supermarkets, banks, and innovative channels of distribution.

This, the company believes will sit well with the modern, busy lives of most people, as it is centred around convenience, said Dharmasiri.  Even as at now the company is offering "buy on line" insurance solutions via the AAI web site.

And as a CSR initiative, Asian Alliance Insurance is involved in fostering professional ideals among school children, brightening their future, while opening new vistas of growth for the nation building effort. Under the theme "Contributing Towards Moulding Future Professionals" Asian Alliance Insurance has been instrumental in organising numerous programmes in many schools along with their regional distribution network in various parts of the country.  Selected school events such as prefects' day, sports meets, prize givings, and inter school events are the focus of these programmes.

Further, Asian Alliance Insurance (AAI) became the "Official Insurer" of the recently concluded Annual Exhibition and Awards Ceremony of the Sri Lanka Printers Association.  Going one step further the company also educated the forum of more than 500 entrepreneurs engaged in printing on the basics of insurance and its benefits.

AAI has already agreed to partner the National Chamber of Exporters as the "Principal Sponsor" for the Annual Export Awards which is scheduled to take place in September. AAI sees this as its contribution towards helping the exporters  at this very crucial point in time with their role in developing the economy. 

Asian Alliance Insurance has also over the last four years continuously provided road and insurance tips both in the English and Sinhala media on an hourly basis over the radio, minimising accidents and fostering a better understanding  and education with regard to the concept of insurance, among the Sri Lankan public.  This has been well received by the audience.

Dharmasiri concluded that Asian Alliance Insurance, as a home grown company, over the last eight years, has delivered results and continued to grow, owing to a far reaching visionary approach, coupled seamlessly with unparalleled action, indicating that none of these achievements would have been possible if not for the perfect partnership and harmony between employees, management, clients and all its stakeholders. "This is indeed the hallmark of professionalism," she said.  

Union Assurance top achievers to attend MDRT in Ontario, Canada

Million Dollar Round Table (MDRT) includes the world's most successful insurance and financial services professionals. Attending the MDRT is the dream of any life insurance advisor as a life and career-changing event, since it gives them the opportunity to network with other successful producers and hear from the world's most prominent speakers.

Seven top achievers of the Union Assurance Life sales force were qualified to attend the prestigious MDRT (Million Dollar Round Table) Annual Conference 2008 to be held in Ontario, Canada from June 22 to 26. The MDRT Annual Meeting is themed "Changing Lives." Union Assurance will bear the full cost of sponsorship for all the participants.

The MDRT qualifying achievers were recognised at the recently concluded award ceremony held at Waters Edge, Battaramulla for their outstanding performance during the year 2007.

The team comprises of  Prasanna Senarathne, Senior Personnel Financial Manager, Kurunegala Branch, who also won the most coveted award  'Champion of Champions' at the Union Assurance Annual Awards Ceremony and participates for the fourth time;Udan Silva, Senior Personnel Financial Manager of Kalutara Branch who has the privilege of attending the conference for the seventh consecutive year; A. Edirveerasingam, Senior Personnel Financial Manager of City Branch who attends the MDRT conference for the fourth consecutive year; and H.D.J.C. Appuhamy of Chilaw Branch who attends the MDRT conference for the second consecutive year.

Other star performers who qualified for this year's conference are  Kapila Tharanga, Senior Personal Financial Advisor of Moneragala Branch,  G. S. S  Kumara,  Personnel Financial Advisor of Chilaw  Branch  and M.T.J. Jeyaraj, Personnel Financial Advisor of Puttalam  Branch.

The team was accompanied by Assistant General Manager Life Distribution, Nalaka Dharmaratne who received a special invitation for the MDRT Conference.

Indian stock brokers moving in to insurance broking

In a clear bid to insulate themselves from the vagaries of the stock market and offer a basket of financial products to their clients, many Indian stock brokers have got into the insurance broking business.

Brokers like Religare, Anand Rathi, Edelwiess, Emkay and India Infoline have set up insurance broking arms, through which they sell both life and non-life insurance products of several companies. While an insurance agent typically can sell products of only one insurance company, an insurance broker can sell products of multiple insurance companies.

In India, insurance broking picked up only a couple of years ago, due to stringent norms which made it necessary for the brokers to have a capital of at least Rs 50 lakhs. Besides this, the business needs to be conducted in a separate company, it should have a different office other than the broking office and it should have separate set of employees.

Religare Insurance Broking already has 1,300 people on its roll and it generated premium worth Rs 107 crores for the year ended March 2008.

"We aim to expand the business five fold to Rs 500 crore of premium by March 2009," said President, Religare Insurance Broking, Chandan Sinha. The company has 57 branches across the country, which are in addition to the stock broking branches. Anand Rathi has a team of 100 people with 15 offices across the country.

Insurance broking is not easy as one has to interact with as many as 25 different companies for selling products, which could be a daunting task. Besides, training a sales force to sell multiple products is a big challenge, say analysts. However, in a bid to give the best deal to a customer, it is imperative to be an insurance broker.

"Insurance (life and non-life) is unaffected by the vagaries of the stock market and it helps derisk the business model," says Senior Vice-President, Sharekhan,  P.Saravanan. Sharekhan was till recently a corporate agent of ICICI Prudential Life Insurance. Plans to get into insurance broking in a couple of months are on the anvil, he adds.

"Insurance is a sticky business. If I can help my clients in getting the motor claims or mediclaims, I can cross sell other products too," says Supriya Rathi, principal officer and director, Anand Rathi Insurance Brokers. They generated a premium of Rs 80 crore last year. "The process is currently at a nascent stage. With more value addition, clients realise that the benefits will be manifold and growth will be faster," says Akhilesh K Singh, head of wealth management, Emkay Shares.

With markets falling by about 6,000 points from the peak of January 2008, insurance broking seems to offer a ray of hope. At present, we have about 250 insurance brokers in the country. The biggest in the business are Aon and Marsh, both multinational companies who are also into reinsurance  

80% Indians do not plan for retirement

According to a MetLife India Insurance survey, over 80% Indian employees have done no retirement planning independent of any mandatory government plans.

Giving details of the other countries, the survey further added that over 81% Mexican employees, 58% Australian employees, 46% employees based in the US and over 31% of the UK employees, have not taken any steps to determine income need or any sort of retirement planning.

These are the findings of the two MetLife surveys - the inaugural Study of International Employee Benefits Trends (iEBTS), and the sixth annual U.S. Study of Employee Benefits Trends (EBTS).

Managing Director, MetLife India Insurance Co.Ltd., Rajesh Relan said, "Despite worries about funding a comfortable retirement or outliving their retirement savings, many full-time workers in developing and mature economies, have taken few or no independent steps to plan for retirement".

In India, while almost three out of four employees (71%) say they are "concerned" about outliving retirement money, only one out of every three (35%) say they have taken steps to determine retirement needs; only 20% say they have done actual planning for retirement.

Further, in a sharp departure from the other countries surveyed, one-third (33%) of Indian employees say they never expect to retire - which may account for why 80% of all employees say they have not done any retirement planning.

Of those Indian workers who have planned for retirement, nearly six out of ten (58%) say they have either achieved or are on track to achieving their retirement goals.

Many of the employees surveyed recognise the importance of retirement benefits and expressed interest in receiving both financial and retirement planning products through the workplace.

Nearly half of Indian employees (48%) whose employers do not offer retirement benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost. About two in every three Mexican employees (66%) are interested in receiving advice from a financial advisor regarding their retirement savings.

In the US, the desire for financial planning guidance is on the rise; nearly half of employees surveyed (49%) are interested in financial planning assistance for retirement issues, up from 38% the previous year.

More than a half (54%) of Australian employers are receptive to offering financial planning services, including personalised advice, to employees and nearly one-third of employees are interested in having employers provide this type of service.

Overwhelming response for Union Call & Go on the web

Have you ever dreamt of getting your own motor insurance policy without having to go through a person or organisation? Well dream no more your wish has already become a reality with Union 'clickandgo.'

This is the latest convenience for Sri Lankan vehicle owners and is an initiative by Union Assurance PLC who revolutionised motor insurance with the Union Motor Call & Go insurance policy by giving customers the distinct advantage of not having to worry about the hassle and inconvenience of taking care of the details after an accident.

Through this policy, customers who encounter an accident can immediately contact the Union Assurance Call Centre, log an entry and drive on. Union Assurance has introduced the Call & Go policy to its customers online. 

Riding on the success of their 'innovation' platform Union Assurance have used web technology to simplify the process further by making the insurance policy available on the web for the convenience of customers.

Now the public have the advantage of accessing all the relevant information required to obtain the Call & Go insurance policy online, input their credit card details and obtain a print of their motor insurance certificate and receipt within a matter of minutes from anywhere anytime.

Once an insurance policy has been obtained online the company will arrange with customers to have the vehicle inspected, no claim bonuses verified etc. at a time and place convenient to them.

This is a fully integrated and automated system, with minimum manual intervention guaranteeing security and protection of customer information offering many conveniences to customers such as 24 x 7 x365 accessibility, quick price checks etc.

Even first time web purchasers are assured a smooth, worry free transaction thanks to the 24 hr telephone helpline, where senior officers of Union Assurance are on call to guide customer who want the comfort of knowing help is at hand. All this and the additional assurance of knowing there is a 14 day no questions asked money back promise.

We caught up with Senior Manager Market Development, Kennedy J. Michael to find out what the customers had to say. He said "Going by what customers who have already bought the policy online say, the freedom to customise ones cover and work at ones own pace have been the most appreciated of the many features of clickandgo."

He continued "The customer response has been overwhelming for our special web discount and have your premium wiped off promotions which will run till the 30th of June. What we did was - create the type of hype required to make a radical idea like buying motor insurance off the web catch on. We now know that purchases on the web will work if accompanied with the right experience and intend bringing more daring and exciting offers in the future."

This was the response when we asked what other facilities are being offered. "Another aspect that we have added on is the M-burse facility - a tie up with Commercial Bank where - customers can receive claim settlements in minutes over the counter from any branch of Commercial Bank. This SMS based payment methodology can be used even by non Commercial Bank customers and is applicable to all classes of motor insurance. 

"Union Assurance as always made very simple propositions leveraging the prevalent technology which provide customers a unique, efficient and affordable method of purchasing Insurance," he added.

Small players diversifying into insurance services business

After the rush of Indian conglomerates and foreign insurers in all segments of the underwriting business, domestic companies, which service these firms in the life and non-life categories, are charting growth strategies in new areas.

A host of family-run companies that were earlier confined to a segment of the insurance services business, are now venturing into other areas.

For instance, the Apollo Group, promoted by the Reddys, has ventured into the broking segment by acquiring E-Meditek.

Similarly, Bhaichand Amulok Group, which has an insurance and reinsurance broking company called Bhaichand Amoluk Consultancy Services, has acquired a 26 per cent stake in another broking firm Willis BA. Willis BA, one of the largest players in brokerage market, holds shares in a TPA called Health India.

A TPA is a specialised health service provider rendering a variety of services, like arranging for hospitalisation and processing and settling claims. On the other hand, an insurance broker's job is to get the best cover with the lowest premium for its corporate clients. There are 30 TPAs registered with Irda, which managed premiums of Rs 4,400 crore in 2007-08.

A host of other promoters, such as Delhi-based Vipul group, Alankit and Safeway, Heritage, are in the TPA segment as well as the broking business. There are many others, such as broking outfit India Insure Risk Management Services, which plan to have a presence in more than one segment of the insurance services market.

While the service providers are venturing into related fields, many in the insurance industry are complaining that regulations prohibit brokers from processing claims. Also, at the time of renewal of big ticket corporate policies, insurance brokers do not disclose the information that they have gathered from TPAs to insurance companies.

Experts said that there is a possible conflict of interest, too, as TPAs, with broking arms, may entertain borderline claims associated with the clients.

An official of the Insurance Regulatory & Development Authority of India, however, pointed out that while issuing licences, the regulator tries to ensure that there is no common promoter or director. "If the two companies (the insurance broker and TPA) are within the same group, there should be different directors and different promoters for the two companies," the source said.

New wave of outsourcing catching on as companies drift East

WHEN Irish insurance company Hibernian last week announced plans to outsource almost 600 back office jobs to a low-cost centre in Bangalore, India ears perked up in insurance headquarters all over Dublin.

Eastern outsourcing is by no means a new phenomenon in the industry -- KPMG estimates the insurance sector contributed $790m to the local Indian economy last year -- but, so far, no Irish companies have embraced the international trend with the vigour now shown by Ireland's largest insurer Hibernian.

Suddenly, a floodgate had been opened, or so some fear.

If the move makes sense for Hibernian, would it not make similar sense for the scores of other insurers? If Hibernian wasn't afraid to make the very politically incorrect decision, then why should other companies continue to shy away?

A flurry of conversations with Ireland's leading insurance executives, however, reveals that Hibernian's move would seem unlikely to provoke a wave of outsourcing, though most are careful not to rule it out entirely.

Sources point out that Hibernian's situation is a very specific one. The insurer's parent, Aviva, already has a substantial outsourcing operation with 6,500 staff employed to service the substantial markets of the UK and Canada. Hibernian chief executive Stuart Purdy admits the job creation demanded by adding the Irish business to the fold will be nothing like the hundreds of jobs lost here.

Others point out that Hibernian is distinctly different to other insurance companies because of its "run from a head office mentality."

Stuart Purdy recently arrived from Scotland to take the helm at the Irish operations after doing a stint in India. Aviva's rotational structure could see him heading for pastures new again in a few years' time. "It's almost like the Nigel effect, managed by the UK with no loyalty to Ireland," a rival executive said.

Another chief executive of an insurance company puts it more bluntly: "I'm Irish and I have an interest in jobs staying in Ireland."

Executives of other insurers also have a fundamental philosophical argument with Hibernian's move, which they say dissuaded them from following a similar direction.

"If people are going to prosper and buy things like car insurance they need to have jobs, so it's incumbent on all of us to maintain a healthy economy," says Axa marketing boss Paul Moloney.

"Setting up an offshore centre doesn't further that." Hibernian is not the only Irish insurance company with a parent who has dabbled in international outsourcing, and sources suggest companies whose parents have already beaten the Indian route are more likely to move jobs from here to India. As one executive puts it: "Ireland is a minor piece of the international puzzle for anyone.

"If companies are looking to do it (outsourcing) for the first time, they'll be looking to do it somewhere much bigger than Ireland."

Irish insurers with existing links to outsourcing include Axa, Allianz Standard Life, Bank of Ireland Life/New Ireland and Friends First owner Eureko.

"Internationally, Axa has a major back office in Bangalore. Over the years we've been under a lot of pressure to see what support we can give that operation," says Moloney.

"We've argued that it didn't fit with our strategy here, we're based around being a local company.

"When we added everything up, it wasn't worth the cost difference."

With about 1,000 staff based in Ireland, Axa is one of Ireland's largest insurers by headcount and has continued to increase its numbers despite shedding 40pc of its revenues over the past three years amid a fiercely competitive general insurance business. "That does put us under pressure, but we'll make sure that pressure doesn't lead to India," says Moloney.

Allianz, which employs close to 900 in Ireland, also has a group offshoot in India. "We have a different business model to Hibernian and have no plans for a similar jobs outsourcing exercise," a spokesman said in a statement.