Tag: reinsurance

The Four Key Disciplines For Reinsurers

Berkshire is far more conservative in avoiding risk than most large insurers. For example, if the insurance industry should experience a $250 billion loss from some mega-catastrophe – a loss about triple anything it has ever experienced – Berkshire as a whole would likely record a significant profit for the year because of its many streams of earnings. We would also remain awash in cash and be looking for large opportunities to write business in an insurance market that might well be in disarray. Meanwhile, other major insurers and reinsurers would be swimming in red ink, if not facing insolvency.

MH370 Insurance settlement for loss of airplane

This is the latest development in regards to the insurance settlement of the loss of jet plane, Boeing 777 – 200ER. We understood from the market that the jet (also referred to as the Hull in the insurance sense) is insured on a Hull All Risks basis for USD100 million, which usually is on an agreed value basis. Of course, in addition to this Hull’s sum assured there are others, like legal liability to third-party including passengers, personal injury, medical related expenses, cargo and mail legal liability, baggage & personal effects, premises, hangar-keeper & product liability. … all of these categories are subject to a combined single limit, which we think should be in the region of USD420 million. In addition too Hull War risks are covered to an agreed value similar to the Hull value, i.e. USD100 million. To sum all these sum assureds up, we should get:

Malaysia-Based BEST RE Entities Downgraded

Malaysia-based BEST RE entities downgraded and kept on watch on weakened group status and stand-alone credit profile Profile Source: Standard & Poor’s  August 8, 2013  Overview | We have revised our view of the BEST RE subgroup’s status relative to its parent,…

Latest on Salama / Islamic Arab Insurance and its core BEST RE subsidiaries

Hi, Guys Latest from the markets…. on Best Re (Labuan) and happy reading! Ratings On Dubai-Based Salama / Islamic Arab Insurance And Its Core BEST RE Subsidiaries Kept On CreditWatch Negative OVERVIEW In our opinion, uncertainties relating to potentially significant…

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…

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…

Overseas Insurance Coverage | Overseas Locations and Contingency Business Interruptions

Approximately 2/3 of Bangkok was submerged under water for more than a month

Is your company providing coverage extension for overseas location? What about extension for Customers’ premises and Suppliers’ premises in respect of Business Interruption or Consequential Loss Insurance cover? The recent massive flooding in Thailand has caused havoc to reinsurers operating…

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…