### 📈 SL Insurance Sector Faces Rs. 52 Bn Claim Surge Post-Ditwah

The Sri Lanka Insurance Institute (SLII) held a high-level forum to address the industry's response to the devastating Cyclone Ditwah. Discussions centered on the unprecedented claims volume and the urgent need for structural reforms in catastrophe risk management. Overall Figures (as of 05 Jan 2026) • Total Claims Value: Exceeded Rs. 52.00 Bn. • Volume: Over 24,200 individual claims filed. • Protection Gap: A significant portion of SMEs and households remain uninsured, heightening state dependency for reconstruction. Sector Insights & Regulatory Response • Apparel & Textiles and other industrial sectors: While many large commercial risks are ceded to international reinsurers, the cost of reinsurance is projected to rise sharply in the next renewal cycle. • Regulatory Push: The IRCSL is urging the industry to simplify policies to increase penetration (currently ~1% of GDP). • Proposed Reforms: Industry leaders are calling for the reintroduction of a National Catastrophic Insurance Programme to bridge the gap in disaster coverage. Future Outlook • Product Innovation: Focus is shifting toward micro insurance and parametric insurance to protect vulnerable communities and MSMEs. • Catastrophe Modelling: Experts highlighted the need for more robust risk modelling to reflect the increasing frequency of extreme weather events.