Sri Lanka’s largest insured property, moves from risky to real insurance via CGSA
View(s):Crescent Global South Asia (CGSA) recently brokered, on behalf of the National Insurance Trust Fund (NITF), the new risk reinsurance cover for the Ceylon Petroleum Corporation (CPC).
CGSA director Indrajith Fernando said the company has transferred the risk liability of the CPC to A – Rated Lloyd’s Syndicates and to A-rated underwriters specialising in energy insurance.
“In line with insurance market practices, the local insurer NITF will no longer retain 100 per cent of the risk. The cover in place is not only supported by Lloyd’s markets, but also by leading reinsurers from Singapore, and the global marine and energy insurance market,” according to a CGSA media release.
CPC will be utilising the expertise of the reinsurance market leaders supporting the programme to carry out comprehensive risk analysis, improving the risk quality of the insured property. The recommendations of these A-rated securities will help to reduce the size and frequency of future claims. Risk assessment of this standard is particularly important when handling a volatile commodity such as crude oil, and its derivative products such as petroleum.
‘Everybody was doing a regulation job neglecting to innovate, do the right thing and also do the necessary hard work. For instance, there were no mandatory covers which are a must for specialised installations such as the CPC. But now while there would be risk surveys being carried out, the liability too is being taken by Lloyds Syndicates with A-rated securities from the world’s premier insurers, entailing substantial savings in premiums,” said CPC Chairman T. G. Jayasinghe.
CSGA will be advising CPC officials on the finer aspects of their insurance programme, which will assist in improving the risk quality of CPC’s assets. Most notably, they would be providing their expertise on the handling of claims related to CPC’s technically sophisticated installations.
In the event of an accident at the refinery or a storage calamity, the comprehensive insurance programme in place would ensure repairs and restitution are carried out efficiently, reducing the potential for any negative effects on Sri Lankan consumers and businesses.