Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Performance
• Governance

Environmental Achievements

• Reduced electricity consumption by 4% compared to 2013.
• Reduced paper usage through various initiatives (e.g., e-documentation, automation).

Social Achievements

• Launched 'School to Office' program, training 100 school leavers.
• Provided access to water to 6 more needy schools.
• Maintained a balanced gender mix in the workforce.
• Reduced employee turnover (excluding fixed-term contracts) to 13%.

Governance Achievements

• Successfully completed the segregation of Life and General Insurance operations.
• Received a Silver award for Corporate Governance disclosures.

Climate Goals & Targets

Environmental Challenges

• Stagnant growth in the insurance industry.
• Increased claims in General Insurance (Motor and Medical).
• Low interest rates impacting investment income.
• Adverse weather conditions affecting claims.
• Competition from new entrants and substitute products.

Mitigation Strategies

• Implemented pricing revisions and weeding out unprofitable accounts.
• Capitalized on equity and debt market movements for investment gains.
• Developed alternative sourcing strategies.
• Introduced new products and enhanced customer service.
• Strengthened distribution networks and improved efficiency through technology.

Supply Chain Management

Responsible Procurement

• Selection criteria include ethical considerations (e.g., child labor, forced labor).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s (IIRC) IR framework, Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines (Core option), Sri Lanka Financial Reporting Standards (SLFRS)/ LKAS

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• MotorGuard Eco Insurance

Awards & Recognition

• Silver Award at SLITAD People Development Awards
• Award for Digital Marketing (Best use of Facebook)
• Gold Award at CA Sri Lanka Annual Report Awards
• Award for HR Practices in Corporate Social Responsibility
• Silver award for Corporate Governance Disclosure

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Developing Our People
• Driving Growth
• Superior Customer Experience

Environmental Achievements

• 10,436 kg Reduction in Green House Gas Emission
• 11% Reduction in Water Consumption
• 5% Reduction in Electricity Consumption

Social Achievements

• Ranked among the top 10 Women-Friendly Workplaces in Sri Lanka
• 164 MDRT Winners

Governance Achievements

• Obtained an External Limited Assurance on our Integrated Annual Report

Climate Goals & Targets

Environmental Challenges

• High dependency on manual processes in some areas of operations
• High turnover rates in the sales force and Bancassurance officers
• Low use of digital selling mechanisms
• Low rates of economic growth, loss of employment opportunities, decrease in worker remittances, reduction in salaries and wages paid to employees and loss of business income affecting the purchasing power
• Increasing interest rates in the market affecting solvency ratios
• Increased scrutiny by insurance regulator with the impacts of COVID-19
• Intense competition among the industry players
• Continued spread of the virus in the country, necessitating branch closures
• Growing business and shift to digital platforms exerting pressure on existing systems
• Increase in surrender rates due to inflationary pressures
• Increasing foreign exchange rates dampening profitability due to increased costs of claims and reinsurance
• Import restrictions on motor vehicles affecting the growth of General Insurance business

Mitigation Strategies

• Investing in digitalisation of processes and services offered
• Introducing new products and expanding distribution network to capture new business
• Motivating the sales force to increase revenue and market share
• Strengthening existing Bancassurance partnerships and entering into new partnerships
• Investing in new Core Systems and other peripheral systems to digitise processes
• Creating attractive career paths especially in the Bancassurance channel to address the turnover and increase retention
• Expanding digital sales platforms to collect premiums
• Introducing products with attractive features using internal competencies to gain competitive advantage
• Capitalising on the relationships built with reinsurers and leverage on our financial strength to offer competitive terms to customers to gain competitive advantage
• Using expertise of staff members to meet all regulatory requirements
• Strategic allocation of investment assets to maximise investment returns while maintaining healthy solvency levels
• Offering attractive rewards and benefits to reduce attrition of the sales force and capture market share to address the high competition
• Maximising performance of existing systems, internal changes and process transformations
• Strategic pricing of products, without compromising profitability, to increase affordability
• Strategic pricing of products were made. Greater focus on sale of Non-Motor Insurance. Liaising closely with our main banker HNB on forex settlements.
• Strengthening supply chains
• Sales force strengthened with increased head count and training
• Expanded Bancassurance channels
• Planned expansion of customer touchpoints
• Digital support for supply chains

Supply Chain Management

Responsible Procurement

• Compliance with local regulations and meeting expected service standards

Climate-Related Risks & Opportunities

Physical Risks

• Unpredictable weather conditions

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IR), Global Reporting Initiative (GRI) Standards, Sustainable Development Goals (SDGs) of United Nations

Certifications: ISO 9001 2015

Third-party Assurance: KPMG

UN Sustainable Development Goals

• 1
• 3
• 4
• 6
• 7
• 8
• 10
• 11
• 12
• 13
• 15
• 17

Sustainable Products & Innovation

• Study Guard

Awards & Recognition

• Top Ten Award for Industrial Excellence
• National Service Sector Silver Award
• Health Insurance Initiative of the Year 2021
• Best Bancassurance Provider in Sri Lanka 2021
• Bronze Award under Insurance Sector Companies
• National Service Sector Bronze Award for Industrial Excellence
• Motor Insurance Initiative of the Year 2021
• One of Sri Lanka’s Top 10 ‘Women Friendly Workplaces’
• Most Innovative Motor Insurer of the Year
• National Bronze Award for Service Sector Industrial Excellence

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Development
• Gender Parity
• Environmental Conservation

Environmental Achievements

• 1% reduction in electricity consumption
• 24% increase in paper recycled
• Pilot project launched in Kataragama to protect Sri Lankan crocodiles
• Introduction of an all-risk bicycle policy
• Actively promoting motor insurance covers for hybrid vehicles. More than 9,500 policies covering hybrid and electric vehicles

Social Achievements

• Ranked among top 70 companies in Asia by Great Place to Work
• Honourably Mentioned as One of Sri Lanka’s Women Friendly Workplaces
• Social Media campaign to raise awareness of road safety
• Installation of water filters in 4 schools
• Donation of urgently needed medicine to Trincomalee District Hospital
• Donation to the Thalassemia Unit affiliated to North Colombo Teaching Hospital
• Total investment in community development Rs. 2.2 Mn.
• Providing a Special Insurance Cover and Cash Grant to Ms. Nethmi Ahinsa Fernando

Governance Achievements

• Compliance with IRCSL/ CSE requirements
• Timely payment of taxes Rs. 939 Mn.
• Implementation of upgraded core insurance systems

Climate Goals & Targets

Environmental Challenges

• Foreign currency liquidity crisis
• Island-wide social unrest
• Food inflation
• Withdrawal of energy and fuel subsidies
• Sri Lankan rupee devaluation
• Temporary halt in external debt repayment
• Resource constraints
• Uncertainty and disruptions to economic activity
• Economic contraction
• High levels of debt
• Weakening global economic outlook
• Increased demand for Life Insurance and medical covers
• Pressure on lapse rates
• Difficulties remitting reinsurance premiums
• Sovereign downgrades
• Ban on vehicle imports
• Increased costs of claims for motor insurance
• Elevated risks relating to talent management
• High levels of migration of skilled talent
• Inflation and increased taxation

Mitigation Strategies

• Impeccable execution of strategy
• Razor sharp focus on Gross Written Premium growth
• Increased income supported by sharp increases in interest rates
• Precautionary measures taken to enhance liquidity buffers
• Strengthening capital and liquidity buffers
• Balancing stakeholder needs with short, medium and long-term priorities
• Institutionalizing mechanisms for delivering value to stakeholders
• Implementation of upgraded core insurance systems
• Formulation of a road map and ESG strategy
• Cautious approach, seeking opportunities
• Leveraging strong leadership position, financial stability, and parent company strength
• Allowances reviewed to ensure employees could survive increasing inflation
• Enhanced Chairman’s Awards
• CEO townhalls
• Guidance from the Investment Committee and Risk Committee
• Building capital and liquidity buffers

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework ( Framework), Global Reporting Initiatives Sustainability Reporting Standards (GRI Standards), Sustainable Development Goals (SDGs) of United Nations

Certifications: Great Place to Work®

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• All-risk bicycle policy
• Motor insurance for hybrid and electric vehicles
• Supreme Health Unlimited

Awards & Recognition

• 'The Best Bancassurance Provider Sri Lanka 2022'
• 'The Best Life Insurance Company of the Year - Special Recognition Award'
• National Gold Award
• 'Best Digital Marketing Brand - Insurance Sri Lanka 2022'
• Sri Lanka’s Top 50 Best Workplaces
• Top 70 Best Workplaces in Asia
• 'The Best General Insurance Company of the Year - Special Recognition Award'
• 'Best Insurance Company Claims Management Team Sri Lanka 2022'
• National Silver Award
• 'Bronze Award – Insurance Sector'

Environmental Metrics

ESG Focus Areas

• Health and Wellbeing
• Education and Sports
• Environment
• Community Development

Environmental Achievements

• Clearing 15 hectares of invasive plants in Lunugamwehera National Park
• 3% increase in paper recycling
• Actively promoting Motor Insurance covers for hybrid vehicles

Social Achievements

• Rs. 4 Mn. investment in CSR projects
• Maintenance of the music room and procurement and repair of essential musical instruments at The Ceylon School for Deaf and Blind in Ratmalana
• Conducting staff training programmes covering 14,745 hours
• Helping to enhance financial literacy through re-printing and distribution of "Financial Literacy" booklet
• Launch of Micro Insurance product for micro - entrepreneurs
• Introduction of eLife

Governance Achievements

• Consistent availability of the majority of the Board, coupled with institutionalised governance mechanisms
• The Board focused on IT Governance as digitalisation was a key priority
• The Colombo Stock Exchange issued a new listing rule on Corporate Governance which requires amendments and enhancements to fully comply with the same

Climate Goals & Targets

Environmental Challenges

• Government policies, regulations and political instability
• Low rates of economic growth locally and globally
• Interest rate impact
• Government tax policies
• Import restrictions and currency fluctuations
• Reduced disposable income due to inflation
• Increased awareness on importance of insurance
• Increase in ageing population
• Enhanced use of digital platforms
• Increased use of social media platforms
• Urbanisation
• Green concepts or ecological product and service
• Lower pool of talent due to migration
• Competitive competitor landscape
• IT is becoming a tool for competitive advantage
• Cyber and information security threats
• Use of virtual communication methods
• Climate changes
• Environmental pollution
• Changing rules and guidelines in regulatory, compliance, accounting and taxation

Mitigation Strategies

• Embedding relevant strategies to address these impacts when forming corporate plans
• Considering external environment impacts for strategy formation
• Incorporated interest rate fluctuations to offer better returns to Shareholders and Policyholders
• Considered Government Policies in strategy formulation which enhanced company performance
• Focused on strategic pricing of products while increased sales of Non-Motor Insurance. Liaised closely with our main banker HNB on forex settlements
• Strategic pricing of products, without compromising profitability, to increase affordability
• Capitalised on awareness on insurance and products through marketing strategies to attract customers to Group
• Promoted our products related to health & retirement
• Developed online and mobile platforms to connect with customers while strengthening IT infrastructure
• More focus given on social media advertising
• Restructuring of our distribution network for better reach customers
• Adopted sustainable business practices across our value chain, reducing the negative impact made on the natural environment such as digital platforms to increase paperless transactions while saving on fuel consumption. Introduction of sustainable products. Supporting bio-diversity as a CSR initiative
• Offering attractive rewards and benefits to reduce attrition of the sales force. Strengthening succession plans and documentation of tacit knowledge
• Considering attractive benefits to strengthen existing bancassurance partnerships and to enter into new partnerships
• Digitalisation of processes using latest technologies considering cost efficiency
• Investments made to address cyber security threats
• Promoted online platforms for transactions and awareness building activities
• Evaluating and incorporating increased risk when underwriting insurance policies, use of risk management techniques such as flood mapping, etc.
• Adopt sustainable business practices across our value chain reducing the negative impact made on the natural environment
• Embedding compliance rules and guidelines when forming strategies of the Group

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Global Reporting Initiative Sustainability Reporting Standards, Sustainable Development Goals (SDGs) of United Nations

Third-party Assurance: Messrs KPMG

Sustainable Products & Innovation

• Micro Life
• eLife
• MotorGuard 3 in 1

Awards & Recognition

• Best Life Insurance Company in Sri Lanka
• Best of Sri Lanka at the 37th Annual International ARC Awards
• Silver Award Winner (Insurance Category) at CA Sri Lanka’s TAGS Awards 2023
• The Organization with the Most Female-Friendly Innovation/Practice in the Sri Lankan Workplace Award
• Insurance Distribution Initiative of the Year
• Dragons of Asia Bronze Award
• Best Digital Integrated Campaign Award
• Company With Great Managers Award
• The Best Life Bancassurance Provider Sri Lanka
• Silver Winner in the Life Insurance Category
• One of Sri Lanka’s Most Outstanding Women-Friendly Workplaces Award
• Best General Bancassurance Provider Sri Lanka 2023
• Most Customer Centric General Insurance Brand in Sri Lanka 2023
• The National Bronze Award