Seminar on 'The Future of Insurance in Sri Lanka' organized by Asian Alliance Insurance-an Unqualified Success

Asian Alliance Insurance PLC (AAI) along with their new shareholders, Messrs. DEG - DEUTSCHE INVESTITIONS - UND ENTWICKLUNGSGESELLSCHAFT MBH of Germany and FMO - NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN N.V. of Netherlands successfully hosted a seminar for Sri Lankan insurance companies and the stakeholders of the industry themed, 'The Future of Insurance in Sri Lanka' on 14th May 2013 at the Cinnamon Lakeside, Colombo. The event was graced by the Governor of the Central Bank Mr Ajith Nivard Cabraal, who has steadfastly supported the initiatives and development of the Insurance industry. The high profile event witnessed the senior management of insurance companies, insurance brokers, actuaries, pioneers of the local insurance industry and stakeholders including Directors, CEOs, COOs, CROs and CIOs from Government Agencies, Rating Agencies, Stock Brokers, Audit and Legal firms, Foreign Reinsurers and Reinsurance brokers. The conference, which is timely, offered a keen insight into the challenges associated with segregated insurance operations which becomes a requirement by February 2015 and how these can be overcome by business leaders. The comprehensive seminar programme offered these decision-makers a 360-degree view of what obstacles they could face and shared the experience on how such segregated companies in other developed markets work. The seminar featured high profile insurance professionals both local and overseas who shared their real life experiences on segregation of insurance companies into Life and Non life operations.

The welcome speech on the occasion was given by Mr. Ramal Jasinghe, Immediate Past President of the Insurance Association of Sri Lanka, and Director/Chief Executive Officer of AAI, in which he affirmed his company's commitment for knowledge sharing and its continued contribution towards the betterment & development of the industry.

The Keynote Address was delivered by Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka, who commended AAI's pioneering initiative in organizing this seminar. He also outlined the benefits of segregation of operations of insurance companies, while injecting confidence amongst the corporate leaders about the nation's economic outlook.

"Sri Lanka has now entered an era of rapid economic and social progress reinforced by peace, longterm development plans, significant development of physical infrastructure, and a conducive business environment. Segregation of composite insurance companies into life and non life would enhance the focus and capacity of players in the industry to reach untapped areas of the economy and support the opportunities which would be generated with the five hubs concept as enumerated in the 'Mahinda Chintana'. Hence, the well functioning insurance market is complementary to banking and financial sector deepening more broadly and the development agenda of the country" stated the Governor of Central Bank.

Commencing the business sessions, Mr. Stewart Langdon of Leapfrog Investments enlightened the audience on 'Strategic Choices relate to Splitting a Composite Insurance Company'. This informative session was followed by a Question and Answer session with Mr. Johan Richters, Director, Asian Alliance Insurance and Mr Stewart Langdon of Leapfrog Investments.

Next, the 'Valuation Considerations in Splitting a Composite Insurance Company' was discussed by Mr. Sanket Kawatkar of Milliman India/Singapore followed by another Q&A session by Mr. Sirinivasa Rao, CEO of Munich-Re and Mr. Sanket Kawatkar of Milliman India/Singapore. Further, Mr. Prakash Schaffter, President of the Insurance Association of Sri Lanka (IASL) shared his insights into the Splitting Progress in Sri Lanka.

The event also included an interesting session where Legal, Accounting and Tax implications of splitting a Composite Insurance Company were spelt out by experts in these fields. Providing the local flavor to the seminar, the aspects of Legal, Accounting and Taxation were covered by luminaries in the respective fields, namely Mr. Naomal Gunawardena of Nithya Partners, Mr. Suren Rajakarier of KPMG and Mr. Duminda Hulangamuwa of Earnst & Young. The sessions provided an excellent opportunity for participants to engage in interactive sessions with experts so as to gain maximum leverage on the topics which covered the vital areas of the segregating operation.

Mr. Richard Holloway of Milliman India/Singapore addressed the distinguished gathering on 'Protecting Solvency and the Interests of Participating Policyholders while Splitting a Composite Insurance Company' which was followed by a Q&A session by Mr. Richard Holloway of Milliman India/Singapore and Mr. Manjula de Silva, Past President of the Insurance Association of Sri Lanka.

The seminar ended on a grand note with sharing of real-life experiences of splitting composite insurance companies, which offered a practical view of the process to participants. The closing remarks were given by Mr. Iftikar Ahamed, Director of Asian Alliance Insurance PLC.

AAI is proud of the positive response it has received from participants, many of whom were leading professionals from other insurance companies in the industry. As a knowledge driven insurance company, AAI is on schedule to achieving its own transition of segregating Life and Non Life operations and is glad to be assisting other companies also to achieve the same, thereby benefitting the industry by ensuring a smooth transition.