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…..

Formation of a Syariah-compliant Captive by “Kwai Lo”?

Just in case we missed this piece of recent news – Labuan International Business and Financial Centre (IBFC) is looking towards developing the world first set of guidelines on syariah-compliant captive insurance. Kudos! Another First for Malaysia…..can’t say of the…

Assignment of Reinsurance securities

Assignment of Reinsurance Securities

I have came across assignment of insurance by the Insured party(ies) to the financier where insurance company is required to acknowledge and confirm certain obligations as prescribed in the assignment of the insurance. I have also had the priviledge of…

Is Lloyds pulling out from LOFSA?

Our sources told us of an imminent pull-out by Lloyds from Labuan Offshore Financial Services Center and therefore deregistering Lloyds Labuan from the Labuan Offshore Financial and Services Act (LOFSA). Main reason sighted, Lloyds’ members were not accorded the same…

The lower of financial strength rating counts….

We have just received some speculative notes from some sources concerning Bank Negara Malaysia (BNM) latest decision on Lofsa registered reinsurers. Where reinsurers are rated by more than one rating agency, the risk charge (RBC framework) would be based on the lowest available rating. For example, BEST…