Press Release: NMG Group discusses insurance industry trends
NMG Group recently hosted an event at the Colombo Swimming Club for its clients in celebration of its 25th anniversary in the island.
NMG, Partner, Mathew Maguire remarked, “Recent changes in the regulatory landscape have resulted in companies having to think more strategically about their underlying business, and the risk based perspective.” He further pointed that ongoing regulatory changes following full implementation of Risk Based Capital (RBC) model have caused companies to closely scrutinize their Return On Capital (ROC) and to rethink how they want to participate in the industry.
It’s noted that the Insurance Board of Sri Lanka (IBSL) would amend annual return formats for insurance companies as part of these regulatory changes. Hence, it would require an assessment of insurance companies’ projected financial position from FYE 2016 onwards. Consequently, the companies would have to examine their projected solvency position and risk profile in line with their business plan.
Commenting on these developments, Mathew Maguire said that these proposals would affect the insurance industry positively by making insurance companies shift its focus into forward-looking strategies that contribute to sustainability and long-term value.
Presenting recent trends in motor insurance sector, he illustrated that in recent years claim frequency, average claim size and average premium have been reducing in the sector which is a positive indicator for the whole insurance industry in the island as the industry is dominated by motor business sector, hence the health of the industry is dependent upon the performance of this sector.
Explaining its operations in Sri Lanka, NMG, Partner, Roshan Perea said, “We focus on three industries: investment, insurance and reinsurance, with our business spanning across three core practices –strategy, management and actuarial.” It’s also noted that the role of consultancy in insurance has been increasing due to these regulatory changes. As a result NMG has strengthened its team in Colombo covering account management and technical services, including big data analytics.
Though the country’s insurance industry is still dominated by motor business, NMG Group is set to expand into life insurance consulting services to apply modern statistical techniques to life insurance portfolio for customer segmentation and profitability analyses.
The company is the largest supplier of general insurance actuarial advisory services in the market. Currently, the team in Sri Lanka calculates the value of reserves required for 12 of the 15 general insurers and also provides strategic advisory services to banks and conglomerates.
RoshanPerera pointed the insurance industry is still dominated by the Motor Insurance sector. NMG Consulting is part of the NMG Group, a privately held company which focuses exclusively on non-banking financial services and wealth management. NMG Group was established in 1992 and has 1000 employees, spread across 18 cities in five continents.
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