Friday, June 19, 2009

Sri Lanka war risk insurance rating lowered

June 19, 2009 (LBO) - International underwriters in London have lowered the war risk rating for Sri Lanka following the defeat by government forces of Tamil Tigers, paving the way for reducing insurance premiums on sea and air cargo.
The London market's Joint Cargo Committee (JCC) has lowered the risk rating from 3.4 to 3.0, in effect changing the status from ‘severe’ to ‘high’, the government information department said.

The move follows negotiations initiated by the Insurance Board of Sri Lanka after government forces crushed Tamil Tiger remnants and wiped out its top leadership in an offensive that ended in mid-May.

Shipping industry officials said the reduced risk rating means war risk insurance premiums could be lowered, reducing costs for shippers.

The government information department statement said the change of risk status was determined after the JCC reassessed the war risk level pertaining to Sri Lanka this month.

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