The Sri Lanka Insurance Institute (SLII) recently organized an insightful programme at its Auditorium, attracting a significant number of industry professionals to discuss the “Aftermath of Ditwah: Impact on the Insurance Industry.” This session offered timely insights into post-Ditwah challenges, regulatory considerations, claims management, and the evolving risk landscape.
The event was moderated by Mr. Ainsley Alles, Deputy Chairman and Managing Director of Senaratne Insurance Brokers (Pvt) Limited. The panel included prominent figures in the insurance sector: Mrs. Damayanthi Fernando, Director General of the Insurance Regulatory Commission of Sri Lanka (IRCSL); Dr. Jagath Alwis, Executive Director of Ceylinco Holdings PLC; Mr. Tanuj Edward, Managing Director and CEO of Orient Insurance Ltd; and Mr. Sithumina Jayasundara, Director and CEO of HNB General Insurance Ltd.
In his opening remarks, Mr. Alles highlighted the extensive damage caused by the cyclone to many livelihoods and businesses. He noted that most homes and small to medium enterprises (SMEs) were uninsured, leaving them reliant on the State for reconstruction and renovations. As of January 5, 2026, insurers had received claims amounting to over Rs. 52 billion from more than 24,200 clients.
Mrs. Fernando elaborated on the regulatory steps taken in the aftermath of Ditwah, emphasizing high-level discussions with insurers, loss adjusters, and brokers to ensure prompt claim settlements. She pointed out the gaps in insurance penetration across the country and stressed the need for regulatory reforms to address these. Mrs. Fernando further emphasized that insurers and brokers should extend their reach to wider segments of the population with simplified and accessible policies, enabling more people to obtain coverage and thereby improving insurance penetration nationwide.
Dr. Alwis discussed the lessons learned from Ditwah regarding the adequacy of catastrophe risk modelling in Sri Lanka. He advocated for the reintroduction of a National Catastrophic Insurance Programme to provide the public with essential coverage against future disasters.
Mr. Edward explored the implications of Ditwah on reinsurance arrangements, noting that existing programmes helped keep insurers’ net losses manageable. However, he cautioned that the cost of reinsurance is likely to rise in the next renewal cycle once the current losses have been settled by insurers and reinsurers.
Mr. Jayasundara focused on innovations in product design, particularly micro insurance and parametric insurance covers, which could offer affordable protection for vulnerable communities and strengthen underwriting portfolios against future calamities.
SLII’s initiative highlighted the importance of collective industry dialogue in building resilience and safeguarding communities against future disasters.
