Total sum insured for any insurance contract should not exceed equity without adequate re-insurance coverage.
All foreign reinsurers must be rated BBB or higher
All local reinsurers should be rated B or above. The Minister of Economy and Trade may grant the approval for a local insurer rated below B to make reinsurance arrangements for policies with sum insured exceeding its Equity as stipulated under point 3 in the Minister’s Decision number 208 mentioned above.
All retained sums insured must be lower than the shareholders’ equity.
The reinsurance slip, together with the following information, should be submitted by insurance companies on a quarterly basis:
- Insured name
- Written premiums
- Ceded premiums
- Retained premiums
- Sum insured
- Treaty type
- Coverage period
- Reinsurers’ name
Legal references: Ministerial decision number 208 dated 1/8/2001.