Re-insurers

Global Affiliation: Reinsurance

In accordance with the Insurance Corporation Amendment Act 1990 and Insurance Act 2010 it is mandatory for the Bangladesh based private non-life insurers that they would reinsure 50% of their re-insurable risk with Sadharan Bima Corporation (popularly known as SBC), the state-owned non-life insurer and reinsurer in Bangladesh, and the remaining 50% is allowed to place with any Reinsurers either home or abroad.

In reinsuring our business we conventionally make use of both methods of reinsurance:

• * Facultative Reinsurance: a form of reinsurance usually negotiated separately for each insurance policy to be reinsured. This method is effective for individual risks not covered, or insufficiently covered, by our reinsurance treaties, for amounts in excess of the monetary limits of our reinsurance treaties, and for unusual risks. Most of the facultative businesses are channeled through different overseas reinsurance brokers.
• * Treaty Reinsurance: a method of reinsurance arrangement where we and our reinsurers negotiate and execute a reinsurance contract for ceding each and every risk exceeding a pre-defined limit, and recovering accordingly. At Reliance we use two main types of treaty reinsurance, proportional and non-proportional.