Sri Lanka taps Renaissance Re for insurance trust fund

June 2 2017 by InsuranceAsia News Staff

Renaissance Re will be the lead reinsurer for Sri Lankan government-run National Insurance Trust Fund (NITF).

The fund provides disaster insurance cover for the island, which often takes the brunt of disasters including droughts, floods and cyclones.

Renaissance Re, whose rating is A, already submitted the lead terms in the winning bid.

The proposal has been accepted by the government from Strategic Insurance Brokers and supported by Crescent Global South Asia at a cost of SLRs816.75 million (US$5.35 million) as annual premium payable.

Earlier this week, the cabinet has green-lighted the renewal of the national insurance policy with a cover of SLRs15 billion.

Reinsurance was required so the risk borne by NITF could be mitigated.

Under the 2016 budget, the National Natural Disaster and Emergency Relief Insurance Scheme covering the whole country for natural disasters was pushed following the losses arising from floods.

MORE FROM: Legal/Regulatory