Reinsurance Arrangements for General Companies (2013)

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

January 16, 2013

Circular Letter to all General Insurance Companies and ATTIC Secretariat REF: CB-OIFI- 181/2013

REINSURANCE ARRANGEMENTS - 2013

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 to the Central Bank on an annual basis.

Accordingly, in respect of the calendar year beginning January 1, 2013 you are required to submit the following information:

(1) A summary of the reinsurance arrangements (including details of any Reinstatement premium protection policy arrangements in place), which may include tables or charts, and which includes at least the following information for each reinsurance treaty and facility (including facultative) under which a material amount of business is ceded:
a) the nature and limits of each treaty and facility; b) the classes of business protected by each treaty and facility; c) the number and cost of reinstatements available; d) the reinsurance premiums for each treaty and facility, and exchange commission if relevant; e) the names and shares of reinsurers on each treaty and facility; and f) a description of the circumstances in which facultative reinsurance is used.

(2) A confirmation letter 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) all reinsurance premiums due from the insurer to reinsurers have been paid (or the status of any overdue payments) for each treaty and facility; 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.

The aforementioned information on reinsurance arrangements effective January 1, 2013 should be submitted to the undersigned by March 1, 2013. For arrangements effective subsequent to January 1, 2013, the information should be submitted within one (1) month of the expiry of the reinsurance arrangements.

We anticipate your usual cooperation and ask that you kindly acknowledge receipt by signing, dating and returning the attached copy of this letter.

Yours sincerely

A a Robet
Anthony Roberts
Chief Actuary
Financial Institutions Supervision Department