The Insurance Authority (IA) circled a direction to the market that states “Insurance companies shall not offer less than 30% of each reinsurance Treaty Program (Quota-Share & Excess of Loss) and for each reinsurance Facultative Risk (Quota-Share & Excess of Loss) in the local reinsurance market on first right of refusal basis”

The circulation highlighted that insurance companies must obtain IA approval whereby its failure to comply with the statement mentioned above based on the expected risks during the year, within 20 days from the end of the second quarter, by explaining the reasons for non-compliance and supporting documents. Also, local reinsurance companies must maintain proper records in terms of reasons for not participating, or participating at a lower percentage and details of the size of reinsurance premium that has been retroceded. The provisions of the circular shall apply starting from 01/ 01/ 2025.

Accordingly, ReTech has developed an innovative and licensed reinsurance platform that supports, structures, and streamlines local reinsurance capacity in line with regulatory requirements outlined in the circular.