Lower re-insurance premia will boost economic development
Local Insurance companies are updating their foreign re-insurance
companies on the situation in the country as Sri Lanka has now become a
no war country, said a Senior official in the local Insurance industry.
Sea cargo being unloaded in a port.
He said that local insurance companies did not charge high premia on
marine insurance covers during the war period in the country. Clients
who had foreign insurers paid high premia due to the war risk in the
The Insurance Board of Sri Lanka (IBSL) in a media statement recently
said insurance charges for the past several years had been increased
since Sri Lanka was affected by the war and foreign re-insurance
companies, had charged higher premia on sea and airfreight and other
relevant insurance cover. Since the war is over, the country could not
be considered as a war-affected zone.
IBSL has informed insurance companies to arrange for lower premia of
insurance cover especially by negotiating with foreign re-insurance
companies to bring about a reduction of all insurance charges and pass
on the benefit to clients who get insurance cover for all services
mainly the cover for international air and sea freight charges, the
Lower re-insurance premia will help reduce the cost of doing business
and also save resources that go out of the country, IBSL said.
According to IBSL the reduction of aviation and marine insurance will
help boost the country’s economic development.