Industry doing well:

NITF woos local companies to reinsure

Indunil Hewage

The National Insurance Trust Fund (NITF), the sole reinsurance body in the country has suggested all primary insurance companies to increase their reinsurance money percentage in NITF.

NITF is also planning to give reinsurance premium to primary insurance companies by encouraging to increase their reinsure money percentage in NITF.

National Insurance Trust Fund (NITF) Chairman Senaka D Abeygoonasekera said insurance companies operating in Sri Lanka pay out over Rs 200 billion annually to foreign reinsurance companies.

NITF hopes to curtail this huge amount of money by 25 percent in five years by attracting more money to the NITF.

"In comparison to many foreign countries, the Sri Lankan insurance industry is doing well with a wide range of insurance products coupled with ethical practices and rules and regulations," Abeygoonasekera said.

"With the current peaceful environment, maritime insurance industry maintains a good momentum.

Ample business opportunities have been created for the benefit of importers following the removal of the 20 percent terrorist cover.

There is no war risk in the country and we see a subtraction in freight charges and air tickets owning to the present scenario in Sri Lanka," Abeygoonasekera said.

The general insurance industry in Sri Lanka has also registered a significant growth in the recent past, driven by influx of more foreign and local investments, relaxation of economy, favourable and steady economic policies adopted to drive the economic growth.

Abeygoonasekera said in the life insurance sector, only 37 percent out of the total population have obtained a life insurance cover.

"The public needs to understand the importance of having a life insurance cover," he said.