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