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.