Renaissance Singapore tapped as Sri Lanka’s disaster reinsurer

Disaster insurance scheme set up last year is backed by several global reinsurance firms

Renaissance Singapore tapped as Sri Lanka’s disaster reinsurer

Insurance News

By Gabriel Olano

Sri Lanka has chosen Renaissance Reinsurance Singapore as the lead reinsurer of its national disaster and emergency relief insurance scheme for the fiscal year 2017-2018.

The insurance system was introduced last year, and was eventually expanded to include a wide range of accidents caused by natural disasters. It has been renewed with a capacity of LKR15 billion (US$98.2 million) and reinsured by several global reinsurance firms, including Lloyd’s of London.

The decision to renew the cover was made upon recommendation of a technical evaluation committee and a Cabinet-appointed procurement committee.

Sri Lankan Prime Minister Ranil Wickremesinghe has said that an additional LKR500 million has been allocated for further improvement of the national disaster insurance scheme.

Currently, the insurance program covers life and property damage to households and small businesses caused by natural disasters such as cyclones, floods, landslides, earthquakes, and tsunamis. Compensation for deaths is LKR100,000, while property damage has a maximum payout of LKR2.5 million.

In June 2016, just a month after the disaster insurance scheme was put in place, Sri Lanka made its first claim for flooding and landslides in the Kegalle district.

Related stories:
Fitch affirms Sri Lanka Insurance Corporation’s rating
Insurers can handle flooding in Sri Lanka, but risks are mounting
Sri Lanka’s disaster risk insurance investment pays off

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