November, 26, 2018
~ National responsibility to facilitate covering the entire island in the key sectors
The major reinsurance programs of the country beginning from National Natural Disaster and Catastrophe, have once again been awarded to and placed by Strategic Insurance Brokers (SIB). This was achieved recently for the third time with the award of the NNDIS 2018/19 tender going to SIB.
This is the third time that best bids for reinsurance in these vital sectors were tendered by SIB, and NNIDS has been awarded from the inception to SIB.
This is a record, says Lee Warner, a Leading Professional in the Global Insurance Industry, and CEO of HLAP.
In effect SIB is taking reinsurance responsibility for the entire country's significant risk burden. This is no accident. These are the key sectors in the country’s reinsurance portfolio.
These programs also signify the largest amounts pledged in Reinsurance in the country. A list of ‘A’ Rated reinsurers worldwide, accredited with Lloyds, have been SIB’s elite panel for these programs. (Renaissance Re, Swiss re, Hannover re, GIC Re, Lloyds Syndicates, Everest Re, Taiping Re.)
‘The panel that we secured is comprised of specialists in this type of Reinsurance, which requires extremely large payouts in case of the risks having to be covered. The three programs aforementioned — Combine Retro, SRCC & TC and Natural Disaster — go in tandem with each other,’ said Mr. Indrajith Fernando, Director SIB.
The Retrocession program for instance covers risk & catastrophe. These programs separately cover exclusive areas of risk, and the specialization that an organization such as SIB has in securing this kind of reinsurance is unique to it.
It is probably why SIB has for the third time been awarded the national disaster program, along with the Combine retro, which had already been awarded, for which business had been placed functionally by SIB at the beginning of the year.
Of all of the aforementioned covers it is difficult for SIB to decide which is best in terms of importance, but the unique first of a kind in the world National Natural Disaster Insurance Scheme cover, is significant in terms of size and priority, said Shiranthi Wijegoonawardena, Head of Reinsurance at Sib.
The reinsurance for programs for 2018, were obtained in the teeth of very stiff competition, which almost bordered on the unorthodox. Much had to be done to ensure that there was justice and fair play in the process of navigating the tender process, when the competition was, to say the least, not exactly above board in its approach, Indrajith Fernando said.
This sort of competition was not only due to the value of the reinsurance, but also the national significance of all of these efforts.
It is easy to forget the aspect of national responsibility that goes with important programs such as the Natural Disaster program and the Strike Riot and Terrorism Cover (SRCC & TC).
‘It is only when a disaster of the proportions that we felt in the two years 2016 and 2017 actually happens, that the social responsibility of organizations such as Strategic Insurance Brokers comes into the focus,’ says Fernando.
The sums insured become incrementally large beginning from a whopping at 30 bn ending with the one free reinstament of 15 bn, 7.5 bn for the Combine Retro. SIB liaises with the largest insurance marketplaces in the world, including Lloyd’s of London. The business handled by the firm emanates from more than 50 countries, via its global network. SIB team in Sri Lanka has a Broker Network of Global Brokers worldwide, represented in all key markets around the world.
The SIB team includes experienced and qualified members including Shiranthi Wijegoonawardena, Omardeen Azardeen, Rupika Tennakoon, Piyal Gunawardena, Doreen De Silva, Nilani Peiris, Lakmali Happuarachchi and Indrajith Fernando.