Are there specific requirements for policies with high sum insured?
  • 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
    • Nationality

 Legal references: Ministerial decision number 208 dated 1/8/2001.