NITF procures reinsurance cover for agriculture | Sunday Observer

NITF procures reinsurance cover for agriculture

The State-owned National Insurance Trust Fund has procured a reinsurance program for its agricultural insurance schemes.

Two global giants, Hannover Re (50%) and Swiss Re (40%) have together accepted a 90% share of the program with three other global reinsurers sharing the balance 10%. The placement was made through J.B. Boda & Co (S) Pte Ltd, a leading reinsurance broker, selected after a competitive procurement process.

This reinsurance programme will provide support to agricultural insurance schemes funded by NITF including the recently launched National Agricultural Loan Protection Scheme. The cover has been arranged on a stop loss basis which is typically the method adopted to obtain reinsurance for agricultural insurance. NITF Chairman Manjula de Silva said, “NITF is delighted to welcome Hannover Re and Swiss Re to its network of reinsurers which already includes the likes of Munich Re and Allianz SE.”

NITF CEO Sanath de Silva said, “Having the backing of strong reinsurers will supplement the financial strength and stability of NITF to withstand external shocks we have to deal with due to volatile climatic conditions.”