This report is a high-level diagnostic review of Sri Lanka’s national natural disaster insurance scheme (NNDIS), a public insurance program launched in 2016 by the Sri Lanka government - owned national insurance trust fund (NITF). The report aims to highlight the challenges facing the scheme, identify areas for further attention, and provide options for strengthening the scheme.
The review addresses two assumed objectives of the NNDIS:
(i) minimizing the financial cost of the scheme, while ensuring accurate, timely payouts to beneficiaries; and
(ii) optimizing the scheme’s financial sustainability and efficiency.
The report is divided into the following sections, each addressing a key issue facing the NITF: section one gives introduction; section two provides NNDIS coverage and product design; section three gives claims management; section four provides underwriting; section five gives reinsurance procurement and brokerage; section six presents capital reserves; and section seven presents other considerations.