Category: Reinsurance segment

Reinsurance in the simplest of meaning simply means the “insurances” that insurance companies buy to cover their insurance business portfolio. Main reasons are to ensure large event losses and large single losses are also covered, insurer would have a much higher capacity to underwrite large risks, and enhance the risk spreading mechanism…..

Best Re at its lowest | Malaysian Insurance Industry affected?

Best Re rating

BEST RE’s FINANCIAL RATING PERFORMANCE POSITION — THE MILLION DOLLAR QUESTION Best Re (Labuan) Ltd. was once a darling reinsurer of the Malaysian insurance industry, especially for the non-life markets. Most difficult risks got placed simply because of the presence…

FLEXA Cover

In recent days the term, FLEXA cover has been widely mentioned whenever coming to insuring of risks either located overseas or where contingency business interruption (CBI) is involved. Examples of CBI related risks are those of extensions in business interruption…

Stock-throughput insurance coverage in Marine Cargo Insurance

career in marine underwriting

Providing a STOCK-THROUGHPUT INSURANCE COVER or avoiding it? Excluding stock-throughput coverage in a Marine Insurance reinsurance treaty agreement is a norm. However, if you check with your peers the exact nature or meaning of what stock-throughput means, nobody seems to…

What is Sanction Limitation and Exclusion Clause? What are the Implications?

Omitting the Sanction Limitation & Exclusion Clause is a big burden to carry

The Sanction Clause as what Malaysian insurers called it has effectively found its place in the industry on 1st April 2011. What exactly is this Sanction Limitation and Exclusion Clause or Sanction Clause in short? This Sanction Clause had on 1st…

Overseas Tax on Reinsurance Premium ceded to Foreign Reinsurers

The real onion and the toxic onion

Overseas tax applicable on reinsurance premium This writeup is really for those who are engaged in reinsurance functions; treaty and facultative alike. It is normal for us to charge a 1.25% (back in 2007 and before we charged 1.40%) on…

From Insurance Levy to PIDM Premium | Malaysia Deposit Insurance Corporation Act 2011

Press it Right

The PIDM Guidelines 2011 (for Takaful and Insurance benefits Protection System {TIPS} – submission and returns on calculation of premium)…. …..has just been introduced. Except for the issue date of this guidelines that was on 11 March 2011 nothing much…

Energas Captive Insurance captured its A rating

Energas Insurance (Labuan) Limited (Energas), the Captive Insurer of Malaysian energy giant, Petronas National or PETRONAS was granted an “A” (excellent) financial strength rating from AM Best. A.M. Best Co. has assigned a financial strength rating of A (Excellent) and…

Punitive Damage Awards |Are these recoverable under Reinsurance Agreement?

What are punitive damage awards? In the context of this posting, punitive damages or what is usually termed as exemplary damages are damages intended to deter the defendant and others from engaging in conduct similar to that which formed the…

Labuan Captive Insurer…… from reinsurance captive to fronting insurer?

Labuan Offshore Financial Services

Pardon my ignorance! But seriously…. very few practitioners actually knew about a major change having made to the section 140(1) of  Malaysian Insurance Act 1996 back in March 2009. Let’s revisit relevant subsections of section 140 of the Insurance Act…

A Boeing 747-400 JOY-RIDE that can be explosive to your Excess of Loss Protection!

1st May 2010 morning did provide some heart-troubling scenes for those who were within the Golden Triangle location to witness. Morons made moronic decision – just because those pilots were senior and experienced crew, with each having clocked over 10,000 flying…