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Management Discussion and Analysis

Customer Capital

Life insurance is a concept that is not well understood in most developing markets, including Sri Lanka. Hence, we approach our customers with a mindset attuned to listening and understanding their hidden and unarticulated needs, create awareness on the importance of protection and assist them in selecting the most suitable life insurance product. In the process they also become sources of insight that drives our research and development efforts to innovate new products and solutions.

The discussion that follows shows how we approach our prospects, deliver the right products and build enduring relationships.

Our Policyholders

Profile

Very broadly, our customers exhibit many of the following demographic characteristics:

Income group: Upper middle, middle, lower middle
Age: 25 - 45 years
Gender: Male 65%, female 35%
Occupation: Executives, middle managers, professionals, entrepreneurs, Government employees, self employed persons
Geography: Urban, semi-urban, rural
Psychographics: Family oriented
Behavioural: Focused on value for money, stability and security

Our Product Portfolio

We offer a wide range of products to meet the diverse needs of our customers. The products fall within the following categories:


Ceylinco Life Endowment

Endowment is a unique plan that allows the policyholder to personalise the insurance plan to fit his/her income. It offers affordable premiums to be paid while still receiving bigger, better benefits.

Ceylinco Life Advance Payment

This policy pays advance payments regularly and pays the balance amount at maturity with bonuses. The life cover is not reduced although the advance payments are paid periodically.

Ceylinco Life Double Growth

The life cover grows by 5%-10% per annum ensuring that the value of the policy grows each year, compensating against inflation.

Ceylinco Life Sipsetha

Sipsetha is a unique plan that provides support when a child needs it most, during the decisive GCE Ordinary Level, GCE Advanced Level and higher study years. More importantly Sipsetha will triple the annuities and waive further payments of premiums, if the child is left without parental support.

Ceylinco Life Five Benefits Plan

It is one of the simplest life insurance products which offer five unique benefits to the policyholder.

Ceylinco Life Ran Daru

Ran Daru provides life cover of 10 times the basic sum assured and 20 times the basic sum assured in case of accidental death. Providing education and medical benefits to a child, this product is the only one in the market that gives such high-risk cover.

Ceylinco Life Supreme

This is a life insurance policy and an investment policy combined into one rewarding policy. As an investment it gives the policyholder a financial return every four years through lump sum payments and above average maturity value; as an insurance policy it provides a comprehensive life cover and optional rider covers such as critical illness, major surgery and hospitalisation.

Ceylinco Life Saubhagya

Saubhagya is an insurance policy specially designed for women where the policyholder receives a comprehensive life insurance cover, lump sum payments with an attractive saving.

Ceylife Online

Ceylife Online is a life insurance policy obtainable through Ceylinco Life’s website. It provides the option of buying life insurance at the click of a button.

Ceylinco Life Uthum

Ceylinco Life Uthum is a comprehensive policy that covers the policyholder and its dependants. It offers the policyholder a free lifetime cover even after the policyholder has received the maturity value. Death benefits, in the event of a sudden loss of life can be increased as much as up to six times the basic sum assured.

Family Takaful ‘Pilgrimage Plan’

This product is specially designed to help pilgrims to Mecca undertake the revered and spiritual journey. One may avail of four product options along with additional benefits if interested.

Ceylinco Life Whole Life Plan

This plan has been specially designed to give you and your family a personalised policy with added protection for a lower premium, and has two product options to chose from based on the policyholder requirement.

Ceylinco Life Pradeepa

Pradeepa offers an adequate life insurance cover for low-income earners at an affordable price. The unique feature of this scheme is that it offers a life cover of Rs. 100,000 for a term of five years for a single premium payment of Rs. 1,250.

Ceylinco Life Family Hospital Cash

This benefit pays up to Rs. 12,500 per day for every day spent in hospital to the policyholder and his family, including children over six months of age. In addition, Rs. 5,000 is paid per day for Intensive Care Unit treatment irrespective of the daily benefits. Further claims are settled without submission of any bills.

Ceylinco Life Major Surgery

This benefit essentially provides cover against expenses for 526 types of surgeries. Benefits also include annual increases in benefits as well as allowing the insured to draw up to three times the value of the policy.

Family Protection Benefits

Offer policyholders the option of enhancing their life insurance coverage.

Ceylinco Life Family Digasiri Plus

This benefit covers the whole family against 36 critical illnesses, and provides financial support for treatment either in local or overseas hospitals.

Ceylinco Life Yugadivi

Yugadivi is a special benefit offered to the spouse of the main policyholder. Yugadivi enables a policyholder to extend the same cover to his/her spouse for a small additional payment.

Ceylinco Life Extra Cover

This is a specialised cover designed to enhance cancer treatment benefit provided under the Family Digasiri Plus scheme in the event the insured is diagnosed with cancer.

Ceylinco Life Jeewa Yathra

Jeewa Yathra guarantees a steady monthly income when permanent disability prevents the policyholder from earning an income. Benefits include a guaranteed lump sum payment in case of a death due to accident or on partial disability.

Family Income Benefit

Provides policyholders an annual payment for 10 years.

Ceylinco Life Flexi Retirement Plans

This product provides a unique personalised benefit for one’s retirement and enables the policyholder to build a large fund at retirement. Flexibility in monthly contributions, selection of age of retirement and period over which contributions are made, make this product very attractive.

New Products and Relaunches

Developing new products and relaunching existing products with new features is an ongoing strategic priority that supports our vision of protecting every Sri Lankan family with life insurance. As noted previously, new products developed recently include life insurance products for women, retirement planning and health and life protection coupled with returns. The last mentioned is 'Ceylinco Life Supreme' launched in July 2015 that was detailed under our product portfolio earlier.

Product Information

Product and service labelling and marketing communications

At Ceylinco Life, we ensure that, policyholders are fully aware of the insurance products prior to purchase. Product brochures are made available at all branches to further communicate details about the products. Up-to-date information on products and services is available on our website, as well as through our Call Centre, which operates from 8.30 a.m. to 5.00 p.m. on all business days.

Going a step further, policyholders are fully made aware of the type of insurance policy and its benefits through a product quotation, which is explained to the policyholder in detail, by the sales consultant when purchasing a policy. Upon doing so, the proposal form is filled along with the consent of the policyholder after which the policy document will be issued. At the time of delivering the policy document, the sales consultant further explains the features of the policy.

We disseminate clear, accurate, timely and relevant information in all the three languages to policyholders to ensure that policyholders are aware of what is being purchased.

The marketing communication materials are ensured to meet the following criteria:

  • Comply with technical guidelines of the product and its features
  • Reflect and support the corporate image of the Company
  • Avoid racial content or inappropriate imagery and information
  • Information is transparent and do not mislead customers and are made available in all 3 languages
  • Include information required and mandated by the IBSL
  • Avoid infringing intellectual property rights
We pioneered the concept of ‘Life Insurance Week’
where our sales consultants actively went to the public and created awareness about the need for life insurance


In addition, the Company also meets both external and internal requirements; IBSL when launching new products and approval from product development teams. Rules and regulations concerning consumer promotions, outdoor branding, trademarks, propaganda promotions etc. are also duly maintained.

Customer Touch Points

Real and virtual presence

Our wide network of 267 branches and a strong sales force are the main touch points through which our services are delivered to our policyholders. In addition, the head-office provides after sales service to any walk-in customer, while the Ceylinco Life Call Centre (hot line: +94 11 246 1461) provides services for anyone from anywhere.

Apart from the above, alternate distribution channels such as bancassurance, online channels and direct marketing are being developed to make life insurance more accessible and convenient to the general public.


Our website www.ceylincolife.com offers information on Ceylinco Life, products and services. We have introduced life insurance products which can be purchased online without the hassle of requiring an insurance representative’s presence and assistance for documentation.

Tele-underwriting

Ceylinco Life was the first life insurer to introduce tele-underwriting in the country. Adopting industry practices in developed markets, this pioneering move in 2013 was an important step in promoting better customer relations and improving persistency ratios. It serves to minimise misunderstandings between insured and insurer and eliminates non-disclosure related issues at the claims stage.

Tele-underwriters take the applicants through the questions and answers covering their basic information and health-related disclosures, resulting in a fine tuning of the proposal forms in a process that benefits both the customer and the Company. It also encourages insurance sales agents to be more accurate in the completion of proposal forms.

Rs. 5.9 Bn of customer benefits
paid during the year 2015. Value added benefits include Pranama scholarships, Family Savari tours, cash bonuses and Randaru Charika educational tours

Branch network

Details of our branch network are given in the section on Supplementary Information.

New branches

During the year, new branches in Company-owned premises were opened in Bandarawela, Batticaloa, Ratnapura and Trincomalee, while the Kilinochchi branch was set up in rented premises. The Kandy and Matara branches were relocated to our own buildings. Continuing this momentum, construction work on three new branches in Wennapuwa, Horana and Panadura commenced during the year.

Geographical spread and customer base

Ceylinco Life covers the whole country with active clients in all 25 districts of the country.

Ceylinco Life had a total of 170,007 new policyholders by end of 2015 compared to 2014, an increase of 22% over the previous year. Given the nature of our products and services, these are long term relationships that typically span 15-20 years.

Customer Satisfaction

We closely monitor complaints as well as proactively seek customer feedback through multiple channels, both formal and informal.

Cases of complaints

2015
Brought forward from 2014 324
No. of complaints received during the year 12,180
No. of complaints resolved during the year 11,977
Carried forward to 2016 527


Customer feedback

Ceylinco Life sets benchmarks for innovation, product development, customer service and professional development. Service is not only about what we do, the process we use or how well we follow procedures. Service is about the experience and the value we create for someone else. We monitor and evaluate this through a formalised system as it is very important for us to measure the level of the service we are providing, and this system is an ideal solution. We have commenced this process with 10 branches located within our own premises on a pilot basis, and the overall satisfaction score was above 80%.

Compliance

There were no incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship during the year. Likewise there were no fines for non-compliance with laws and regulations concerning the provision and use of products and services; nor were there substantiated complaints regarding breaches of customer privacy and losses of customer data. The Company also has no instances of non-compliance or any fines relating to laws and regulations.

Campaigns and Promotions

Pranama Scholarship Awards

The 14th Annual Pranama Scholarships presentation was held in February 2015 which saw 154 young Sri Lankans being awarded scholarships worth more than Rs. 8 Mn and being identified as future leaders of Sri Lanka. To date, this scheme has rewarded and motivated 1,924 young adults and children, with scholarships worth over Rs. 100 Mn.



Family Savari

Family Savari, the event which provides an opportunity for policyholders and their families to win an all expense paid tours to foreign countries and to spend a day at the Leisure World Theme Park in Sri Lanka was launched for the 9th consecutive year in 2015.

The 8th edition was concluded in 2015 with winning policyholders and families taken on tours to Switzerland, Singapore, Dubai and the Leisure World.

Family Savari is the largest promotion in the local insurance industry with over 15,000 beneficiaries to date.

Ran Daru Charika 2

This is a programme that provides an educational city tour to places of importance around Colombo. During the year, 300 children island-wide were taken on an educational tour around the City of Colombo. For many, it was a first time experience.




Kandy Perahera viewing for Premium Club Members

Members of the Ceylinco Life Premium Club and their families were invited to an exclusive viewing of the Esala Perehara in Kandy in 2015. Seated viewing was provided from a specially erected platform at the Company's Kandy Branch complete with refreshments.

Life Insurance Week

The Life Insurance Week was conducted for the 8th consecutive year in February 2015 with the theme ‘Who do you live for?’ The campaign focused on creating awareness on life insurance and all members of our sales team visited homes, schools, offices and public places to educate about the need.



14th Annual Pranama Scholarship Awards 2015
- 154 recipients
- More than Rs. 8 Mn worth of Scholarships


Life Insurance Industry Awareness Month

Held in September 2015, this was an event organised by the Marketing and Sales Forum of the Insurance Association of Sri Lanka in all parts of the country. Ceylinco Life with its employees and sales agents contributed to its successful implementation and recorded 1,030 winners, which is nearly a third of the total number of winners who participated in a competition.

Retirement Planning Month

The Retirement Planning Month was held in May 2015 for the 8th consecutive year. The theme ‘How much is enough’ focused on helping people plan their retirement and was driven by our sales force around the country visiting prospective policyholders on how they should plan their retirement.