By Ishara Gamage
Ceylon Finance Today: Sri Lanka's only reinsurance provider, The National Insurance Trust Fund (NITF), on Friday shortlisted eight reinsurance brokers, backed by some of the world's largest reinsurers.
These eight have submitted bids for the retrocession programme for 2016 and they will be paying reinsurance claims of between Rs. 1 Billion and Rs. 5 Billion, NITF Chairman Manjula de Silva told Ceylon FT, late Friday night.
"The objective of this programme is to obtain protection for the balance sheet of NITF in the event of a major catastrophe, and also it will be a major relief for the Treasury," he said.
The shortlisted eight reinsurance brokers were:
Lockton Reinsurance Brokers ,J.B. Boda & Co(s) Pte Ltd, K.M.Dastur Reinsurance Brokers (pvt) Ltd, Guy Carpenter, JLT Independent Insurance Broker (pvt) Ltd, Aon Reinsurance Brokers , India Insure - The risk Managers (Foresight) and Life & General Insurance & Reinsurance Brokers (Pvt) Ltd
Some of the above companies have their local representatives as well.he added.
NITF is the only organization, State or private which offers reinsurance in Sri Lanka. There is a government ruling and gazette notification that all primary insurance has to cede 30% of their total liability with our reinsurance division which is a compulsory cession and rest of 70% with a foreign reinsurer, NITF Chairman Manjula de Silva told Ceylon FT.
What this effectively means is that we will be transferring our entire reinsurance liability to a foreign party, which will be useful in the event of a major catastrophe such as the 2004 tsunami or the recent earthquakes in Nepal, he said.
We are ready to pay up to one billion rupees as reinsurance claims. But claims above Rs one billion, we have to transfer in to the newly selecting reinsurer effective from 01st January 2016, he added.
The NITF is planning to close this final selection within a few weeks from now on, after a comprehensive evaluation of the NITF's Technical Evaluation Committee and the ministerial level committee.
The National Insurance Trust Fund was established in 2006, as a statutory body to offer Agrahara Insurance policies for public sector. "We have been providing insurance covers for all Strike, Riot, and Civil Commotion and Terrorism through our SRCC and T Fund. We currently manage over Rs 10 billion worth of assets, the NITF Chief remarked.
Currently, NITF serves over 750,000 government servants and their families. Altogether we were serving more than 2.8 million people, he said.
www.sundaytimes.lk
Ceylon Finance Today: Sri Lanka's only reinsurance provider, The National Insurance Trust Fund (NITF), on Friday shortlisted eight reinsurance brokers, backed by some of the world's largest reinsurers.
These eight have submitted bids for the retrocession programme for 2016 and they will be paying reinsurance claims of between Rs. 1 Billion and Rs. 5 Billion, NITF Chairman Manjula de Silva told Ceylon FT, late Friday night.
"The objective of this programme is to obtain protection for the balance sheet of NITF in the event of a major catastrophe, and also it will be a major relief for the Treasury," he said.
The shortlisted eight reinsurance brokers were:
Lockton Reinsurance Brokers ,J.B. Boda & Co(s) Pte Ltd, K.M.Dastur Reinsurance Brokers (pvt) Ltd, Guy Carpenter, JLT Independent Insurance Broker (pvt) Ltd, Aon Reinsurance Brokers , India Insure - The risk Managers (Foresight) and Life & General Insurance & Reinsurance Brokers (Pvt) Ltd
Some of the above companies have their local representatives as well.he added.
NITF is the only organization, State or private which offers reinsurance in Sri Lanka. There is a government ruling and gazette notification that all primary insurance has to cede 30% of their total liability with our reinsurance division which is a compulsory cession and rest of 70% with a foreign reinsurer, NITF Chairman Manjula de Silva told Ceylon FT.
What this effectively means is that we will be transferring our entire reinsurance liability to a foreign party, which will be useful in the event of a major catastrophe such as the 2004 tsunami or the recent earthquakes in Nepal, he said.
We are ready to pay up to one billion rupees as reinsurance claims. But claims above Rs one billion, we have to transfer in to the newly selecting reinsurer effective from 01st January 2016, he added.
The NITF is planning to close this final selection within a few weeks from now on, after a comprehensive evaluation of the NITF's Technical Evaluation Committee and the ministerial level committee.
The National Insurance Trust Fund was established in 2006, as a statutory body to offer Agrahara Insurance policies for public sector. "We have been providing insurance covers for all Strike, Riot, and Civil Commotion and Terrorism through our SRCC and T Fund. We currently manage over Rs 10 billion worth of assets, the NITF Chief remarked.
Currently, NITF serves over 750,000 government servants and their families. Altogether we were serving more than 2.8 million people, he said.
www.sundaytimes.lk
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