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Sri Lanka life insurance market eyed by German insurer

April 02, 2008 (LBO) – German insurance company Allianz says its Sri Lankan insurance business has become very profitable and the company aims to extend from general insurance into the bigger life market. The company's subsidiary, Allianz Insurance Co. Lanka, plans to hire more sales staff and open branches outside the capital Colombo as it expands, Allianz Insurance Asia Pacific Executive Vice President Heinz Dollberg said.

Allianz, which entered the island three years ago, has been focussing on corporate business, especially big firms and German companies and companies already insured with Allianz elsewhere in the world.

It has now applied for a license from the Insurance Board to enter the life insurance market.

"Life insurance has bigger potential than non-life," Dollberg told LBO in an interview.

"In the longer-term, life insurance is more profitable. It is sold to more people in the world and has a direct impact on the lives of people."

Growth of life insurance also helps governments raise funds as a lot of capital is collected by life insurance firms from clients which are invested in government bonds.

He said the company in overseas markets usually enters a new ma

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