2021 July Global Marketing Decisions 40032294

Organization name- Softlogic Life Insurance (PLC)

1A.1.1-Type of organization
Organization Profile Legal form- Incorporated as Public Vision-To revolutionize insurance in
Company Name- Softlogic Life Insurance (PLC) limited Company (PLC) in 1999 Sri Lanka through world-class
Headquarters- 16th Floor, One Galle Face, Colombo-02 under CSE innovations and deliver extraordinary
Competitive ranking- 3rd Life insurance provider Brand value-2.7Bn (LKR) AA Rank stakeholder value.
Company overview- SLI was formally known as Asian alliance which had established itself in Mission-We exist to nurture your
the SriLankan life insurance industry (SLID) in the year 2000 as a profit-oriented organization. wellbeing through delivering
Approximately after a period of 11 years from it establishment the company was acquired by innovative insurance solutions by
Softlogic holding (PLC) in 2011 which is considered to be one of Sri Lanka’s largest well- becoming the number one choice of
established, dynamic and reputed conglomerates, which had forayed itself into numerous striving life insurance provider in Sri Lanka
industries, following the acquisition by SLH the formally know Asian alliance was re-positioned Value-Caring, Authenticity,
and re-branded in the first quarter of 2017 has ‘Softlogic Life insurance (PLC)’ Table 1 Courageous, Innovation, Simplified
1A.1.2-Size of the organization; SLI has a young and emerging life insurance provider despites intense competition,
negative externalities & external environment challenges, as shown a positive growth in terms GWP. However, lacked
growth significantly, on other financial trends & returns, below (Fig & TB) depicts the KPIS of SLI for FY 2019/20.
2019 2020 2020 2019 2018 2017 2016 2015
Revenue/GWP growth 12.6Bn (LKR) 15.1Bn (LK)
ROCE 54.9% 32.2% 1.1 1.6
Profit before tax 2,604Mn LKR 2,130 Mn LK 1.6 1.9
0.8 1.3
Market price growth 113.3% -16.3%
Investment in R&D 1.3Mn LKR 1 Mn LKR
Island wide footprints 98 100 0 0.5 1 1.5 2
Market capitalization 14Bn LKR 12.8Bn LKR 1A.1.4-Customer base Figure 1-Percentage change in MKT-share
Male 2,576 2,869
Female 1001 1053 In context to (fig-5) it could be identified that SLI caters to both
Outsourced (M/F) 146 138 B2C & B2B markets, the below (TB-3), illustrates the total
Total work force of SLI 3,723 4,060 number of B2C claims that are acquired & no of polices active.
1A.1.3-Range of goods and services Table 2 Further, it depicts the total number of B2B strategic alliance of SLI
The range of insurance services that is offered at Application 2019 2020
No of Customers acquired 909,680 845,263
SLI are under four five main classifications they No of new life insured 647,912 588,876
are life/health based insurance, investment, No of polices in active status 500,374 579,986
pension, Bancassurance & Micro life insurance Strategic partnerships 19 15
1A.1.5-Main Competitors Table 3
services, under these services life insurance is
considered as the major contributor in terms of The low life insurance penetration in SL has created an intense
RC (80.5%) to the organization. Below figure competing environment for SLI from mature, well-established &
illustrates the wider array of services, offered by highly creditable life insures such as ceylinco life, who is
SLI along with their revenue contribution. considered as the current MKT-leader with a MKT-share of 24%.
5.83% 13.56% 20
23.97% 15
15 12.5
13.06% 19 12
17.4%
14.34%
10 13.5
16.59% 11.5
5
5.1
0
Ceylinco Life SLIC
AIA insurance SLI
Union Assurance HNB Assurance
Figure 2 MKT-share comparison Figure 3 GWP growth comparison
1A.3-Stakeholder analysis utilizing Mandelow’s Matrix’s
Internal Shareholders, Employees, Elements SH P I
stakeholders Directors, Managers, SMT Key Players H H
Connected Customers, Competitors, Keep satisfied H L
stakeholders External agencies, suppliers Keep informed L H
External Government, regulators, Minimal efforts L L
stakeholders community, environment P-Power I-Interest Table 5
1A.4-Constrains for Growth Table 4
The primary constrain that hinders SLI’s growth in the SLID is its highly ridged, formal and centralized organizational
culture & climate which strongly confronts & impedes the organizations ability in implementing changes or in agilely
adopting itself in capitalizing potential MKT-opportunities/triggers or in responding to potential crisis, external threats
& uncertainties which could materially and adversely impact the organization, its performance, operational cost & its
ability in effectively aligning its resources & competencies in supporting strategies to achieve its strategic intent via
capitalizing identified MKT-opportunities such as low life insurance penetration, increase mobile and internet
penetration and rising digital trends in the SLID in differentiating its offering & sustaining a strong competitive
advantage among its aggressive, intensified & highly reputed competitors (figure-2). Further, SLI’s organizational
structure, process & leadership style is considered highly bureaucratic, ridged & centralized in ensuring professionalism
via formally laid procedures this facilitates in efficiency gains, but limits the organizations ability in creating cross
functional integration within employees and the ridged strategic apex in supporting creative development & fostering
innovation in achieving growth, competitiveness and in ultimately achieving is strategic intent 19 | P a g e