Renaissance Re lead reinsurer for Sri Lanka disaster insurance cover
ECONOMYNEXT – Sri Lanka has selected global catastrophe reinsurance specialist Renaissance Re to be the lead reinsurer of its state-run National Insurance Trust Fund (NITF) which provides disaster insurance cover for the island, battered by successive droughts and floods.
The ‘A’-rated Renaissance Re of Singapore submitted the lead terms in the winning bid accepted by government from Strategic Insurance Brokers (Pvt) Ltd., backed by Crescent Global South Asia (Pvt) Ltd at a cost of Rs816,750,000 as annual premium payable.
The cabinet of ministers this week approved the renewal of the national insurance policy with a cover of Rs15 billion and reinsurance was sought to reduce the risk borne by NITF.
The National Natural Disaster and Emergency Relief Insurance Scheme covering the whole country for natural disasters was proposed in the budget of 2016 when the island suffered severe floods after heavy rains.
Heavy rains have triggered floods and landslides this year too ending a severe drought, the latest cycle in severe weather changes that retarded economic growth last year and raised insurance costs.
The catastrophic insurance cover could settle claims up to 2.5 million for any uninsured property and 100,000 rupees for any death of a Sri Lankan citizen due to natural perils.
(COLOMBO, May 31, 2017)