Ceylinco Life Insurance Limited
INTEGRATED ANNUAL REPORT 2016

BUSINESS MODEL

Stakeholders

The following diagram illustrates the stakeholder engagement process of our Company:

Stakeholder Identification

We consider our stakeholders to be individuals or groups who can affect the value creation process of our Company over time. They may be significantly affected by our business operations and their actions may be expected to affect our ability to achieve our objectives.

Accordingly, we identified our shareholders, customers, employees, business partners and the community and environment in which we operate as our primary stakeholders.

Shareholders
Customers
Business Partners:
Actuaries, independent sales agents, reinsurers and industry associations
Suppliers and Service Providers
Employees
Community and Environment
Government
Regulators:
Insurance Board of Sri Lanka, Central Bank of Sri Lanka and Department of Inland Revenue
Professional Bodies
Ombudsman
Banks and Financial Institutionals
Competitors

Stakeholder Mapping and Prioritisation

The stakeholders were assessed on their relative significance to our business. This was based on their influence and the degree of interest on the value creation process of our Company. This enables us to prioritise the allocation of Company resources and managerial effort. The following matrix illustrates the tabulation of our stakeholders based on the two criterias:

Stakeholder Engagement

Engaging our key stakeholders in long term dialogue provides important input that informs our decision-making. This helps us to continuously improve and make progress towards our strategic agenda. These conversations also enable us to identify current and emerging issues and recognise opportunities to develop products and services to deliver sustainable value to our stakeholders.

Assessment of stakeholder concerns and expectations

The expectations and concerns of our stakeholders are identified and assessed after stakeholder identification. Since these concerns and expectations vary according to the stakeholder group, it is important to have a clear understanding. Listed below are the primary concerns and expectations of the various stakeholders identified by us:

Stakeholder Group Primary Concerns and Expectations
Shareholders Dividends paid
  Financial information and disclosures
Customers Service standards
  Policy bonuses/delivery of claims, maturity payments, policy payments on time
  Financial stability of the insurer
Business Partners: Actuaries Data required for the actuarial valuation
  Timely payment of actuarial fees
Business Partners: Independent Sales Agents Commissions
  Job satisfaction
  Job security
Business Partners: Reinsurers Timely payment of reinsurers’ premium
Business Partners: Industry Associations Participation in industry-related seminars, forums and conferences Contribution to industry development
Employees Salary and remuneration packages
  Bonus and other incentives
  Promotions and career advancement
  Job satisfaction
  Job security
Community and Environment Corporate social responsibility (CSR)
  Employment opportunities
  Contribution to the preservation of environment
Government, Regulators, Professional Bodies and Ombudsman Financial prudence and stability of the industry
  Compliance with laws and regulations
  Innovation and best practices
  Payment of taxes
  Business ethics
  Fair settlement of claims
  Adherence to best practices
Banks and Financial Institutions Investment opportunities
  Cross-selling opportunities
  Facilitate continuous relationships
Competitors Fair competition
  Industry development and growth

We ensure appropriate engagement mechanisms are in place for each stakeholder group. The table below provides examples of such engagement mechanisms:

Method of Engagement Frequency of Engagement Key Topics and Concerns Raised During Engagement Company’s Response to Such Topics and Concerns

Shareholders

     
Annual General Meeting (AGM) Annually Review of the past financial year’s performance and engage in discussions with the management The Company held its second AGM on 30 March 2016.
Annual Report Annually Financial information and disclosures about the Company Timely publication of the Annual Report for the year ended 31 December 2016.
Quarterly Interim Financial Statements Quarterly Quarterly financial performance and disclosures about the Company Timely publication of the interim Financial Statements.
Company website Continuous Company news, latest information and updates on current affairs The corporate website is regularly updated with latest information.

Customers

     
Complaints, inquiries and requests received from walk-in customers across the branches Ongoing Queries pertaining to their policies and service offered Easily accessible hotline/website to provide information and customer service points at all our branches.
Sales force feedback Ongoing Concerns of policyholders about their policies and services offered Establishing the most extensive island wide branch network and increasing the interaction between sales personnel and customers.
Customer surveys As required Monitor service standards Conduct regular customer satisfaction surveys and take corrective action promptly where necessary.
Inquiries/complaints received through the Call Centre Ongoing Concerns of policyholders regarding their policies and services offered Easily accessible hotline to provide information and monitor service levels.

Business Partners: Actuaries

   
Year end actuarial valuation of the long term insurance business Annually Data required for valuation, data validations done, new product introductions during the year, assumptions used, computation of product-wise reserves and capital adequacy ratio and preparation of information required by the regulator The data was validated and submitted to the Consulting Actuary with necessary information including the assumptions used and product-wise reserves to determine the bonuses for the participating policyholders.

Capital adequacy ratio of the Company was computed and relevant information required by the regulator was compiled with the certification of the Consulting Actuary.

Business Partners: Independent Sales Agents

 
Annual and mid year awards ceremonies Annually Motivate by recognising and rewarding outstanding performance Giving awards, cash rewards and foreign tours including media publicity. Providing a training programme for the target achievers.
Sports Annually Opportunity to showcase talents and interact with colleagues Reward best performers and give recognition in the Company newsletters.
Outing Annually Opportunity to meet and fellowship with independent agents and their families of different branches An outing to a hotel with the independent agents and their families.
Grievance handling Ongoing basis Work-related issues Discussions with immediate supervisors.

Dedicated sales support centre.

Frequent visits by senior management to branches and divisions.

Business Partners: Reinsurers

   
Long term treaty Ongoing basis Continue a long term and mutually beneficial partnership with Sri Lanka’s leading life insurer Actively maintaining business relationships.

Honour contractual obligations including timely payment of the reinsurance premium.
Formal interactions with reinsurance partners Ongoing basis Maintain a healthy portfolio Implementation of disciplined underwriting and claim management processes with technical guidelines. Mitigate losses.
On site visits and meetings As required   Support product development and knowledge sharing.

Business Partners: Industry Associations

   
Insurance Association of Sri Lanka Monthly committee meetings Formulate joint industry initiatives on technical updates, regulatory matters, grievances and co-ordinate correspondence with Insurance Board of Sri Lanka Life Insurance Awareness Month, which is a joint industry effort aimed at highlighting the importance of life insurance among the general public.

Ceylinco Life plays a key role in industry associations as the market leader and holding the position of Chairmanship of both Marketing and Sales Forum and Life Insurance Forum.

Employees

     
Succession planning Annually and as required Increase internal competition Introduction of career progression and development on special projects.
Sharing of information on Company performance New year message, year end reviews, monthly messages Create high expectations on rewards and recognition Implementation of a performance based reward system.
Respect opinions and suggestions from every level through departmental forums with the CEO Quarterly Possibility for process improvement Conduct meetings with Heads of Departments prior to the main meeting.
Celebrate financial and non-financial achievements As required    
Encourage volunteering Company events and other official activities Lack of opportunities to engage all volunteers Creating new opportunities and allocation of opportunities based on competencies.
Encourage innovation Launch of special projects and introduction of new business activities    
Give and receive feedback Inculcated in the corporate culture, at biannual appraisals and at different stages of projects Encourage constructive feedback from all levels Conduct regular training on counselling and coaching.
Show respect Embedded as a core value in the corporate culture Generational gap Encourage all to practice corporate values.
Encourage learning Promote a culture of learning, performance-based promotions Encourage continuous learning in all age groups Encourage team performance.
Align with the Company goals and strategies Annual objective formulation and biannual appraisals Changes in objectives due to changes in the operating environment Set new key performance indicators and rewards through regular reviews.
Programmes for work-life balance Daily    

Regulator: Insurance Board of Sri Lanka (IBSL)

 
Submission of statutory returns Quarterly and annually as stipulated Clarifications about the information furnished in the returns Timely submission of all statutory returns.

Prompt response to all clarifications required by the IBSL.
Submission of other documents Ongoing basis   Submission of documents such as new product details and new advertisements etc., as stipulated by the IBSL.
Industrial forums, meetings and discussions As required New developments and concerns in the industry Participating in industrial forums, meetings and discussions organised by the IBSL.

Regulator: Central Bank of Sri Lanka

 
 
Submission of periodic information to the Central Bank Monthly, quarterly, and annually   Timely submission of all information.
Contribution to surveys and indices of the Central Bank Monthly, quarterly, and annually Clarifications on information furnished Timely submission of information for Purchasing Managers’ Index, Business Outlook Surveys and National Accounts Estimates.

Regulator: Department of Inland Revenue

 
 
Submission of tax returns and payment of taxes Quarterly and annually   Timely payment of all applicable taxes and timely submission of tax returns.
Meetings and discussions with the Department of Inland Revenue As required Clarifications about information furnished in tax returns Participation in discussions and providing explanations to queries.

Community

     
CSR projects Ongoing basis Identifying groups who need assistance in the areas of healthcare and education Deserving beneficiaries are identified and assisted through school development projects and ‘Waidya Hamuwa’ medical camps.
Sustainability initiatives Ongoing basis Minimising adverse environmental impacts, optimal use of non-renewable natural resources  

Review and reporting

The stakeholder engagement process of our Company is a continuous process that changes and evolves in response to developments in the business environment. It is imperative that we regularly review this process, given the dynamic nature of the environment and its effects on stakeholder concerns and expectations. The key developments are reported to the management.

Memberships of associations

Our Company participates in the following associations:

Insurance Association of Sri Lanka (IASL)

Our nominees are represented in the following committees and forums of the IASL:

  • Executive Committee
  • Legal Advisory Forum
  • Life Insurance Forum
  • Marketing and Sales Forum
  • HR Forum
  • IT Forum
  • Finance and Technical Sub-Committee
  • Actuarial Sub-Committee

Sri Lanka Insurance Institute (SLII)

Our Company is a member of the SLII, with Deputy General Manager – Technical serving as the Secretary of the Institute.