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Management Discussion and Analysis

Business Partner Capital

Business partners are an important link in our value chain, the main players being our sales agents, reinsurers, consulting actuaries and industry associations.

Sales Agents

Our sales agents (also referred to as sales force) are independent contractual agents who work exclusively for Ceylinco Life. They totalled over 4,118 by end 2015, with males accounting for 53%. Through our 267 branches, our sales agents have penetrated all 25 districts of the country. Also as the table below demonstrates the Company has consciously given equal opportunities for all employees throughout the country.

Distribution of sales force

Male Female Sales force
Province No. % No. % %
Central 159 56 124 44 6.9
Eastern 169 54 145 46 7.6
North-Central 186 58 134 42 7.8
North-Western 292 53 256 47 13.3
Northern 140 47 156 53 7.2
Sabaragamuwa 140 50 138 50 6.8
Southern 214 54 184 46 9.7
Uva 148 57 113 43 6.3
Western 741 52 679 48 34.5
Overall 2,189 53 1,929 47 100.0

All sales agents are hired from the local community.

The sales force plays a major role in taking the message of life insurance across the country.

 

Training and development

Given the importance of our sales force, we invest in development of all who are involved in sales through both in-house and external training.

The in-house training programmes are conducted in co-ordination with our Training Department and the Sales Administration Department, and include:

  • Ceylinco Life Field Manager Course: This course is designed to enhance skills for sales planning and recruitment activities of branch heads as they function in a managerial/supervisory role.
  • Continuous Professional Development series: The course content is designed to increase the skills of the sales force, and courses are held throughout the year. It is mandatory for sales agents to accumulate a minimum number of training credits each year.
  • A 10-day regional training programme conducted at branches for new recruits.
  • Monthly orientation programmes held at the Head Office in both Sinhala and Tamil languages which are aimed at improving the professionalism of our agents.

During the year, we offered two special training programmes delivered by foreign resource persons who are accredited trainers. These sessions exposed our sales personnel to the new developments and innovative approaches in sales and recruitment fields practised overseas.

Ceylinco Life maintains long term cordial relationships with international insurance bodies such as the Life Insurance Market Research Association which in turn provides specialised training to our sales force to improve their professionalism and efficiency.

Overseas exposure delivered during the year, included the participation of 20 of our sales officers at the Asia Pacific Life Insurance Congress (APLIC) held in Bali, Indonesia while another 6 attended the Million Dollar Round Table (MDRT) held in New Orleans, USA.

Training facilities

Ceylinco Life has invested in our own residential training facility through Serene Resorts Limited. We also use our own auditoriums at 17 locations spread around the country which are equipped with the necessary facilities for training.

Your insurer shares a long-standing reinsurance relationship with both Swiss Re of Switzerland and Munich Re of Germany who are ranked #01 and #02 in the world respectively, in terms of financial strength and expertise in the industry

Engaging our sales force

As the driving force of our business, Ceylinco Life interacts with our sales force regularly to improve communications and build loyalty towards the organisation. Some of the important activities initiated by the Company for this purpose are as follows:

Annual awards

This is the main event in our annual event calendar. It serves to recognise and reward outstanding performances among employees and the sales force. The winners receive plaques, medals, certificates, cash prizes and overseas tours. Winners are selected at different levels such as the best branch head, unit head and sales agents based on various key performance indicators.

Mid year awards

This is organised in July every year to recognise outstanding sales agents based on their half yearly performance. The winners are rewarded with plaques, medals, certificates and cash prizes.

Sports meet

Ceylinco Life encourages sales agents and employees to take part in the Annual Sports Meet.

 





Reinsurers

Ceylinco Life has a long-standing association with the world's top two reinsurers, namely Swiss Re of Switzerland and Munich Re of Germany. We maintain a close relationship with the reinsurers and meet frequently to discuss matters relevant to both parties. In addition to the reinsurance protection, both reinsurers provide underwriting services, technical advice, product development support and training for the staff.

Relationships with reinsurers

Name Location Since when
Swiss Reinsurance Company Limited Zurich, Switzerland Since our inception in 1988 (Initially with M&G prior to its acquisition by Swiss Re)
Munich Re Reinsurance Company Munich, Germany Since 2003
Munich Re Takaful Munich, Germany Since 2014

Business growth

Gross premium ceded to reinsurers reached Rs. 320.1 Mn in 2015.

Name 2015 2014 2013 2012 2011
Swiss Re 215.7 187.4 172.1 168.9 161.8
Munich Re 102.3 93.4 83.9 84.5 74.6
Munich Re Takaful 2.1 1.0 0.2 0 0
Total 320.1 281.8 256.2 253.4 236.4

Reinsurance ratio

Premium income excluding CRA and investments Rs. 10,149 Mn
Reinsurance gross premium ceded including catastrophe cover Rs. 320 Mn
Reinsurance ratio 3.15

Consulting Actuaries

Willis Towers Watson, tracing its roots to 1878, is a leading global advisory, actuarial consulting, broking and solutions company that helps clients around the world turn risk into a path for growth. It advises clients across four business segments: Corporate Risk and Brokering; Exchange Solutions; Human Capital and Benefits; and Investment, Risk and Reinsurance.

We have been obtaining actuarial advisory services from this actuarial consultancy firm right from our founding years in the long term insurance business.

Willis Towers Watson currently has 39,000 employees in more than 120 countries serving 80% of the world’s 1,000 largest companies along with many mid-market and smaller businesses around the world.

Industry Associations

Insurance Association of Sri Lanka

Ceylinco Life is a member of the Insurance Association of Sri Lanka (IASL). The IASL Executive Committee functions as the apex forum in which matters relating to the insurance industry are discussed by member companies. The Executive Committee formulates joint industry initiatives, takes up important issues flagged by Sub-committees and forums and co-ordinate correspondence with the Insurance Board of Sri Lanka (IBSL).

Six Sub-committees function under the stewardship of the Executive Committee, and Ceylinco Life participates actively through nominees in its Committees and forums.

Executive Committee

Thushara Ranasinghe (Director/Deputy CEO)
Alternate: Palitha Jayawardene (Director/CFO)

Legal Advisory Forum

Kushan Weththasinghe (Manager – Legal)
Alternate: Saman Premarathne (Legal Officer)

Life Insurance Forum

A Sirisena (Deputy General Manager – Technical)
Alternate: S Kumara (Senior Manager – Technical)

Finance and Technical Sub-committees

Palitha Jayawardene (Director/CFO)
Alternate: R Abeynayake (Director/Deputy CFO)

Marketing and Sales Forum

S Hemachandra (Deputy General Manager – Marketing)
Alternate: U Shanker (Assistant General Manager – Marketing)

Human Resources Forum

S Jayathilake (Manager – Human Resources)
Alternate: S Munaweera (Senior Assistant General Manager – Agency Administrator)

IT Forum

R M U K Rathnayake (Senior Deputy General Manager – ICT/CIO)
Alternate: C B Herath (Senior Assistant General Manager – ICT/Deputy CIO

Participation in Professional Associations

Our Deputy General Manager – Technical, Asoka Sirisena is the Secretary of the Sri Lanka Insurance Institute (SLII), which is the only body that provides educational services to the insurance industry in the country. SLII conducts technical courses, professional examinations and provides agency licensing for insurance agents.

Ceylinco Life Brand Manager, Ms. Dilini Rathnayake serves as a Board member of The Chartered Institute of Marketing, Sri Lanka. The institute is part of the Chartered Institute of Marketing, UK which is the world’s largest professional body for marketing.