Re-inventing Life Insurance through Segregation of Cooperative Insurance Co.
Life policy holders from the past, present and future would be happy to be partners of a life insurance company with the segregation of Cooperative Insurance Co. into life and non-life insurance company. In keeping with the Regulation of Insurance Industry (Amendment) Act No.3 of 2011, Cooperative Insurance Co. (CICL) floated a fully owned subsidiary company – COOPLIFE Insurance Ltd. – for the purpose of segregating the composite business it had been successfully conducting for last 15 years.
CICL shareholders- cooperative organizations in Sri Lanka- were confident enough through their past experience with CICL with enhanced dividends they received, who raised Rs. 500 million within a short time to venture into form the coop insurance group consisting of two companies.
New COOPLIFE Insurance obtained the license to conduct life insurance business from the Insurance Board of Sri Lanka in December 2014 and obtained courts clearance to transfer assets and liabilities to the new company from the CICL. As on 1st January 2015, Cooperative Insurance Co. has already transferred the business to COOPLIFE with the human resources involved in the business. It had also taken action to recruit professionals to conduct and expand life business as additional acquisition of competencies. New board of directors for COOPLIFE is in place. It would have a new office complex of its own within next few months.
Mr. Upali Herath, Managing Director of the Cooperative Insurance Co. stated that COOPLIFE is expected to venture into new branding of its products soon and micro-insurance and group business through mutual groups soon. Being one of the lowest premium charging insurance companies, it will have a broader outreach in the community through need based products. Life policy holders could expect enhanced participation in company business and its benefits through the surplus they create.
With current life fund of Rs. 1 Billion, COOPLIFE is expected to maintain high solvency ratio and enhanced bonus paid to life policy holders than hitherto paid. Cooperative Insurance Co. paid Rs. 40 per Rs. 1000 to policy holders in 2013. During 2014, the life business of CICL had a growth of 21% over the previous year. With the new identity and accumulated strength, the current and prospective life policy holders and the shareholders would have better benefits which could match successful life companies.
Cooperative Insurance Co. inaugurated its business with a new identity and new determination.
The CICL and CIL, being one family, would have the same motto: For the People by the People in the service of Sri Lanka community being a user owned public limited liability company.
