Home / Reinsurance

Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit the total loss the original insurer would experience in case of disaster. By spreading risk, an individual insurance company can take on clients whose coverage would be too great of a burden for the single insurance company to handle alone. When reinsurance occurs, the premium paid by the insured is typically shared by all of the insurance companies involved.

To Whom

Facultative reinsurance is commonly purchased for large, unusual or catastrophic risks. Reinsurers thus must have the necessary resources to underwrite individual risks carefully. Other uses of facultative reinsurance include

  •    When an insurer is offered a risk that exceeds its standard underwriting or reinsurance limits for that class, facultative reinsurance can permit the ceding company to accept the risk.

  •    Insurers can fill gaps in coverage caused by reinsurance treaty exclusions by seeking separate facultative coverage for a specific policy or group of policies.

  •    A reinsurer can issue facultative reinsurance to participate in a market in the short term to minimize risk and take advantage of favorable rates.

  •    A treaty reinsurer may purchase facultative reinsurance to protect itself and its treaty reinsurers.

Treaty reinsurance, the most common form of reinsurance, covers some portion of defined class of an insurance company's business.


This policy shall be extended to cover loss or damage due to strike, riot and civil commotion which for the purpose of this endorsement shall mean loss of or damage to the property insured directly caused by:

  •    Increases the underwriting capacity of the insurer.

  •    Protects against a catastrophic loss, which helps to stabilize profits.

  •    Reduces the unearned premium reserve.

  •    Allows an insurer to exit a territory or line of insurance by transferring the whole policies of the territory or insurance line to a reinsurer.

  •    Reinsurers can provide advice about specific lines of insurance to insurance companies that are starting up or entering a new line of insurance business.

" Cover all loss or damage which occur within the geographical limits of Sri Lanka "

Feel free to Contact us

Hotline : +94 112 026 600
Fax : +94 114 700 988