Materiality Assessment
Our materiality assessment takes into account the factors that significantly affect our ability to generate value over time. These topics may evolve over time and are therefore regularly assessed to ensure they remain pertinent and in line with stakeholder needs and changes in the macroeconomic landscape.
Basis of Materiality
We follow a "double materiality" approach in determining the basis for assessing the impacts of each topic on our stakeholders and our stability as an organisation.
Impact Materiality (External)
Impact of the Company and its value chain on people and planet
Financial Materiality (Internal)
Impact of external factors on the Company and its financial well-being
The Company recognises a topic as material if it:
Poses a significant impact to business performance
- Influences financial stability, profitability, or operational efficiency.
- Affects strategic decision-making and long-term sustainability.
Holds importance to key stakeholder groups
- Is important to policyholders, investors, regulators, employees, or the wider community.
- Aligns with customer expectations, market trends, and regulatory requirements
Aligns with the Company's strategic objectives
- Supports Ceylinco Life’s long-term vision, purpose, and the retention of market leadership.
- Contributes towards promoting innovation, customer trust, and competitive advantage.
Corresponds with emerging risks and opportunities
- Addresses evolving industry challenges such as SLFRS 17 compliance, climate risk, and digital transformation.
- Captures growth opportunities like financial inclusion, product innovation, and ESG-driven investments.
Influences reputation and regulatory compliance
- Affects corporate governance, ethical business conduct, and brand perception.
- Impacts compliance with key laws and regulations
Is measurable and reportable
- Is trackable through key performance indicators (KPIs) or qualitative assessments.
- Can be communicated transparently in financial reports, ESG disclosures, and stakeholder engagements.
Has a notable frequency or potential of occurrence
- Matters with a low or moderate impact and a high likelihood of occurence
Materiality Assessment Process
Analyse:
- Internal and external stakeholder feedback
- Operating dynamics
Identify:
- Risks, opportunities and challenges to the business
- Stakeholder concerns and expectations
Prioritise:
Topics significantly impacting key stakeholders and Company performance and resilience
Review:
Topic progress and determine areas for improvement
Report:
On topic progress to stakeholders and the Board of Directors on a regular basis
Integrate:
Identified topics into organisational processes
Changes to Materiality
15
Material Topics
04
Main themes aligned with business strategy
05
New topics introduced in 2024
material topics
The annual materiality assessment enables the Company to identify and understand emerging risks and opportunities, strengthening its ability to create and sustain long-term value.
Through this process, we continuously update and prioritise material issues based on the significance to the business, its stakeholders, and society.
In 2024, the Company identified 15 key material topics under its strategic pillars (encompassing ESG factors and financial performance). These topics held the most significant impact on the Company, stakeholders, and the broader industry. Notably, five of these topics were introduced this year, reflecting the Company’s agility in responding to evolving concerns raised by both internal and external stakeholders.
Material Topics for Ceylinco Life
| Material Topic | Reason for Materiality | Impact Materiality | Financial Materiality | Degree of Significance | Change from 2023 | Operational Implications |
|---|---|---|---|---|---|---|
|
M1
Financial Stability- Asset Liability Management & Profitability |
Ensures long-term policyholder security and investor confidence. |
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Business Resilience, Shareholder Value |
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M2
Market Leadership & Competitive Position |
Strengthening brand reputation and market share in Sri Lanka’s life insurance sector. |
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Growth, Customer Retention |
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M3
Product Innovation & Diversification |
Developing flexible insurance solutions (e.g., health, retirement, and microinsurance). |
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Growth, Customer Retention |
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M4
Risk Management & Reinsurance (Risks other than CRROs and SRROs) |
Protecting financial stability through effective underwriting and risk mitigation. |
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Operational Resilience, Compliance |
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M5
Climate Risk & Insurance Protection |
Climate change affects mortality and policy risks, requiring adaptive insurance products. |
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N
|
Risk Management, Product Innovation |
| Key Financial Implications | Strategic Implication | Impacted capital | SDG | GRI Topics | Stakeholder implication |
|---|---|---|---|---|---|
|
Total Assets and their quality Life Fund Growth Investment Income Solvency and Liquidity Return on investment (ROI) Capital adequacy |
Financial Performance pages 127-151 |
Financial Capital | SDG 8, SDG 9 |
GRI 201 |
Refer to pages 90-98 Shareholders, Policyholders, Regulators, Actuaries |
|
Market share and GWP Acquisition expenses Advertising and branding costs pricing strategies, Long-term sustainability |
Financial Performance pages 127-151 Social Responsibility pages 168-203 |
Financial, Social Relationship Capital | SDG 8, SDG 12 |
GRI 201 |
Refer to pages 90-98 Shareholders, Industry Associations, Competitors |
|
Market Share and GWP – New business growth Product development cost Advertising PBT/PAT |
Financial Performance pages 127-151 Social Responsibility pages 168-203 |
Intellectual, Social & Relationship Capital | SDG 3 SDG 9 |
GRI 417 |
Refer to pages 90-98 Policyholders, Reinsurers, Sales Agents, Regulators |
|
Risk transfer costs, Reinsurance pricing, Capital buffer impact |
Corporate Governance pages 205-240 Financial Performance pages 127-151 Social Responsibility pages 168-203 |
Financial, Social & Relationship Capital | SDG 13, SDG 16 |
GRI 205 GRI 418 GRI 206 GRI 417 |
Refer to pages 90-98 Reinsurers, Regulators, Actuaries |
|
Increased underwriting cost Climate-related claims |
Corporate Governance pages 205-240 Environmental Sustainability pages 153-166 |
Natural, Manufactured, Social & Relationship, Financial Capital | SDG 11 SDG 13 |
GRI 201 GRI 302 GRI 303 GRI 305 GRI 306 |
Refer to pages 90-98 Community & Environment, Regulators, Reinsurers |
| Material Topic | Reason for Materiality | Impact Materiality | Financial Materiality | Degree of Significance | Change from 2023 | Operational Implications |
|---|---|---|---|---|---|---|
|
M6
Sustainable & Responsible Investing |
ESG-aligned investments help insurers manage long-term risks and enhance value for stakeholders. |
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N
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Governance, Financial Stability |
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M7
Disclosure of Sustainability Related Accounting Standards |
Improving readers' un derstanding on climate related disclosures |
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N
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M8
Customer Trust & Experience - Best-in-class solutions and service excellence |
Enhancing customer service, claim processes, and policyholder engagement. |
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Customer Retention, Reputation |
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M9
Sales and Employee staff acquisition |
Maintaining a highly skilled workforce ensures business stability and continuity |
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M10
Employee Development & Well-being |
Investing in workforce training, diversity, and workplace safety to ensure a strong corporate culture. |
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Human Capital, ESG Leadership |
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M11
Empowering Communities & Enhancing Well-being |
Providing financial protection through life insurance and social environment programs that are essential for society and environment |
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Customer Trust & Retention Brand Value & Market Positioning Stronger Relationships with Stakeholders Operational Efficiency & Cost Savings Risk Management & Resilience |
| Key Financial Implications | Strategic Implication | Impacted capital | SDG | GRI Topics | Stakeholder implication |
|---|---|---|---|---|---|
| Sustainable asset portfolio growth and their returns |
Financial Performance Environmental Sustainability |
Financial, Natural Capital |
SDG 7, SDG 12, SDG 13 |
GRI 203 GRI 308 GRI 408 GRI 409 GRI 414 |
Refer to pages 90-98 Shareholders, Regulators, Community & Environment |
|
Compliance costs Investor confidence Financial Reporting Adjustments |
Corporate Governance pages 205-240 Financial Performance pages 121-151 Environmental Sustainability pages 153-166 |
Social & Relationship, Financial Capital |
SDG 12, SDG 13 |
GRI 201 |
Refer to pages 90-98 Shareholders, Industry Associations |
|
GWP – New and renewal premium growth Claims settlement cost PBT/PAT |
Financial Performance pages 127-151 Social Responsibility pages 168-203 |
Social & Relationship, Intellectual Capital |
SDG 1 SDG 3 SDG 9 SDG 10 |
GRI 417 GRI 418 |
Refer to pages 90-98 Policyholders, Sales Agents, Employees |
|
GWP-New Business, Talent acquisition costs, Commission cost |
Financial Performance pages 121-151 Social Responsibility pages 168-203 |
Human, Social & Relationship Capital | SDG 1, SDG 8, SDG 5 |
GRI 401 GRI 404 GRI 405 |
Refer to pages 90-98 Employees, Sales, Agents, Industry, Associations |
|
Talent acquisition costs Training and development cost Salaries and perks |
Financial Performance pages 121-151 Social Responsibility pages 168-203 |
Human Capital | SDG 1 SDG 3 SDG 4 |
GRI 202 GRI 402 GRI 403 GRI 404 GRI 405 GRI 406 |
Refer to pages 90-98 Employees, Sales Agents |
|
Financial stability, market growth, risk management, long-term profitability |
Social Responsibility pages 168-203 |
Social and Relationship Capital | SDG 1 SDG 3 SDG 4 SDG 5 |
GRI 203 GRI 413 |
Refer to pages 90-98 Community |
| Material Topic | Reason for Materiality | Impact Materiality | Financial Materiality | Degree of Significance | Change from 2023 | Operational Implications |
|---|---|---|---|---|---|---|
|
M12
SLFRS 17/SLFRS 09 Implementation |
Ensuring adherence to evolving financial reporting and solvency regulations |
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N
|
Financial Stability, Transparency |
|
M13
Ethical Business Conduct & Governance and Regulatory Framework |
Strengthening corporate governance, risk management, and transparency to build trust. |
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Reputation, Stakeholder Confidence |
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M14
Cybersecurity & Data Privacy |
Safeguarding customer data and complying with privacy regulations. |
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N
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Trust, Compliance |
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M15
Digitalisation of Business Operations |
Using AI and big data for risk assessment, fraud detection, and operational efficiency. |
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Competitive Advantage, Risk Reduction |
| Key Financial Implications | Strategic Implication | Impacted capital | SDG | GRI Topics | Stakeholder implication |
|---|---|---|---|---|---|
|
Implementation costs Change in impairment provisions Increased Volatility due to new Assets (SLFRS 9) and liabilities (SLFRS 17) measuring methods |
Corporate Governance pages 205-240 Financial Performance pages 127-151 |
Financial, Intellectual Capital |
SDG 12 |
Refer to pages 90-98 Regulators, Shareholders, Actuaries |
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Legal compliance costs, regulatory penalties |
orporate Governance pages 205-240 Financial Performance pages 121-151 Environmental Sustainability pages 153-166 Social Responsibility pages 168-203 |
Financial, Social & Relationship Capital | SDG 8 |
GRI 205 GRI 206 GRI 406 GRI 405 GRI 418 |
Refer to pages 90-98 Regulators, Shareholders, Industry Associations |
|
Data breach costs, regulatory fines, cybersecurity investment |
Corporate Governance pages 205-240 Social Responsibility pages 168-203 |
Intellectual, Social & Relationship Capital |
SDG 9 | GRI 418 |
Refer to pages 90-98 Policyholders, Regulators, Suppliers |
|
Operational efficiency gains, IT infrastructure costs, automation savings |
Corporate Governance pages 205-240 Financial Performance pages 121-157 Environmental Sustainability pages 153-166 Social Responsibility pages 168-203 |
Intellectual, Manufactured Capital |
SDG 8, SDG 9 |
Refer to pages 90-98 Employees, Sales Agents, Policyholders |
materiality matrix
The below materiality matrix represents the diverse risks and opportunities pertinent to Ceylinco Life, and maps their degree of impact on both stakeholders and the organisation.