Reinsurance Arrangements 2018: General Insurance

CENTRAL BANK OF TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 625-4835; 4921; 5028; Fax: (868) 627-4696 E-Mail Address: info@central-bank.org.tt Website: www.central-bank.org.tt

December 13, 2017

CIRCULAR LETTER TO ALL GENERAL INSURANCE COMPANIES AND ATTIC SECRETARIAT

REF: CB-OIFI-3249/2017

Reinsurance Arrangements – 2018

The Central Bank of Trinidad and Tobago (the Central Bank), as part of the ongoing monitoring of the insurance sector, requires insurance companies to submit information on their reinsurance arrangements on an annual basis.

Accordingly, a hard copy summary of all reinsurance arrangements (including facultative) existing as at January 1, 2018 should be submitted to the undersigned by February 2, 2018. Soft copies of this information should also be submitted to Ms Karyl Vance at kvance@central-bank.org.tt

The summary should include for each treaty and facility:

a) treaty/facility number; b) effective date; c) expiry date; d) the nature and limits of cover; e) the classes of business protected; f) the number and cost of reinstatements available; g) the estimated reinsurance premiums and exchange commission if relevant; h) the names and shares of reinsurers and their most current ratings by rating agency; i) a description of the circumstances in which facultative reinsurance is used; and j) a summary of any material changes to the structure or terms based on your 2017 submission.

Please include details of any Reinstatement premium protection policy arrangements. Also provide confirmation letter(s) from your reinsurer(s) or broker(s) indicating whether:

a) the summary of the reinsurance arrangements is accurate and complete; b) all reinsurance arrangements have been placed and are legally enforceable, including the current status of documentation; c) for each treaty and facility, all reinsurance premiums due from the insurer to reinsurers have been paid (or the status of any overdue payments); and d) there are any disputes with reinsurers about recovery on particular claims or the coverage provided, including in respect of reinsurance for previous years.

Also, provide a brief summary of how the recent natural disasters may have influenced decisions to amend or maintain the structure of your treaties.

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Circular Letter to All General Insurance Companies and ATTIC Secretariat December 13, 2017

Please be reminded that in accordance with Section 23 of the Insurance Act Chap 84:01, for arrangements effective subsequent to January 1, 2018 or any changes to reinsurance arrangements, particulars must be submitted within thirty days.

We anticipate your usual cooperation.

Yours sincerely,

[Signature]

Michelle Chong Tai-Bell
Inspector of Financial Institutions