How Crescent Global’s policy covers were a national blessing

“Natural Disaster for Fly by Nights intermediaries”

Crescent Global’s top rated reinsurance covers and support, are what could only be termed ‘a miraculous blessing bestowed on the country’, for maiden National Insurance Schemes rolled out by the Government recently, including a first of its kind in the world, The National Natural Disaster Insurance Scheme for all uninsured Sri Lankans.

The NNDIS initial estimated claim of upto Rs 5.4 B for the flood and disaster in May last year is being settled, in particular in Kegalle, which was the worst effected district, where all claims were settled in full earlier this year.

Crescent Global South Asia, has the most diverse and the most spectacular reinsurance portfolio in the country in terms of National Insured Schemes launched, insured properties, and reinsured projects, and a quick glance would make this fact abundantly clear.

Examples are the Cooperative Insurance policy for the Fisherman, NITF National Natural Disaster cover for upto 10 billion, SRCC and Terrorism Cover top up cover upto 10 B, Combined Retrocession Cessation XOL cover for 30% compulsory ceding of for all general insurance, and Ceylon Petroleum Corporation, by far the largest specialized risk in SL, as reinsured with A rated securities in the international markets by Crescent Group.

The NITF has been in the forefront in launching the National Schemes during the last year. The best example, Hon Minister Niroshan Perera says, is the pro active cover, the insurance provided to all uninsured for natural disasters including a cover for fishermen, and more recently the scheme for paddy farmers. The most recent is the island wide insurance for natural disasters for agricultural farmers for Rs 25,000 per hectare, topped up by a national cover for natural calamities such as flood, inundation, drought and wild elephant attacks, which were all insurance initiatives reinsured in ‘A’ rated securities.

The cover would also help to settle any financial obligation of the farmer to any Bank or Financial Institute. Such covers are 90 per cent in excess of the 110 p.c required in the Finance Ministry levy.

‘Crescent Global’s single strength has been that organizations that have been reinsured through its good offices have helped entities such as NITF, Cooperative Insurance and the Petroleum Corp be pro active about disasters, or accidents and losses, and not reactive.

“It’s also significant that what Crescent Global has insured is either on the mammoth scale — the entire country, for natural disasters — or of mammoth size, such as the biggest properties, of which Petroleum is obviously huge, in terms of the volatility of the commodity insured, and the sheer enormity of the property value indemnified’, said Mr. Indrajith Fernando, Director, Crescent Global South Asia.

But it’s not the mere pro-activity, but the range as well. Crescent Global’s portfolio is marked by its diversity.

Take the national Cooperative Fisheries cover for instance. All fishermen registered under Co-op Fishermen Society are covered for Personal Accident for Rs.l million per person, including funeral expenses, with a hospitalization per day cover. Additionally, this is a 365 day, 24 hour cover, for onshore and offshore eventualities.

‘The natural disaster insurance scheme (NNDIS), a first of its kind in the world, applauded by Breton Woods institutes including the World Bank, also insures all fishermen, uninsured households, small and medium-size businesses and industries, and all persons while fishing for personal accident, during natural disasters, with a cover of 10 B. It is a cover to beat all these covers, so to speak,’ adds Fernando.

This cover includes an Emergency Relief Fund for food and shelter, for upto Rs. 200 million.

This insurance also looks at the uninsured Small and Medium Size enterprises with a humane eye. When natural calamities strike, the conglomerates eventually come through with their heft and status as organizations that are ‘too big to fail’, and all the reassurances that come with that status, but the SME owners are squeezed into a state of penury, because they are neither individuals, nor conglomerates. The NITF Natural Disaster cover indemnifies any uninsured business enterprise with a maximum 10 million per annum turnover, for a maximum liability of 2.5 million, on an indemnity basis.

The proof of the pudding is in the eating. The Natural disaster scheme launched in April 2016 sufficed for the initial estimated claim of up to Rs 5.4 B from the flood and disaster the following month that occurred during May 16, 17 and 18 to be specific.  The claims are in the process of being settled, and in particular in the Kegalle district, which was the worst effected district due to landslide, all claims were fully settled earlier this year.

The Ceylon Petroleum Corporation cover, which saw Crescent Global securing reinsurance for all property of the CPC, was insured to the tune of an all risk value of 61B (offshore, onshore, energy, petroleum, property risk, including SPBM and crude oil refineries, and finished goods, all being indemnified.)

Of all of the aforementioned covers it is difficult for Crescent Global to decide which is best in terms of importance, but the Strikes Riots and Civil Commotions All Risk Cover, and the Terrorism top up cover, and the Petroleum cover, are significant in terms of size and priority.

The sums insured become incrementally large beginning from a whopping sum of Rs.100 billion for fisheries, going upto 32 billion for the Petroleum cover, and then 10 billion for the Strike Riot and Civil Commotion and Terrorism top up cover.

Crescent Global’s headquarters is situated in the City of London, close to the most important insurance marketplace in the world, Lloyd’s of London. The business handled by the firm emanates from more than 50 countries, via its global office network. CG is a member of the Global Broker Network (GBN worldwide),represented in over 140 countries around the world.