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Sri Lanka's insurance watchdog is asking market players to develop more products to cover against natural perils after last year's tsunami left behind US$ 130 million worth of claims. The tsunami killed over 30,000 people, destroyed about 11,000 houses, damaged around 6,000 vehicles and left the island with a US$ 1.
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6 billion repair bill.
Eleven months after the disaster, the island's tiny US$ 170 million industry, escaped lightly as most people and property affected was not insured.
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But the increasing trend of natural disasters is now raising public interest about the economic benefits of insurance.
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"After the tsunami, there is a demand from the insuring public for more clarity in the policy wordings.
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This may equally apply to the re-insurance contracts too regarding the clarity of treaty wordings to avoid technical misinterpretations, which may cause delays in claim settlements," notes Lasinee Serasinghe, Director General of the Insurance Board of Sri Lanka.
To avoid future mishaps,