Reinsurance Arrangements (Life Insurance) – 2014

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

February 06, 2014

CIRCULAR LETTER TO ALL LIFE INSURANCE
COMPANIES AND ATTIC SECRETARIAT

REF: CB-OIFI-307/2014

Dear Sir/Madam

Reinsurance Arrangements – 2014

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, a summary of existing reinsurance arrangements (including facultative) should be submitted to the undersigned by March 1, 2014:

(1) The summary should include for each treaty:

a) Treaty number; b) Reinsurer; c) Reinsurer’s most current rating; d) Effective date; e) Renewal and Cancellation terms; f) The classes of business/products/territories covered; g) Type of reinsurance/Basis of reinsurance/Reinsurer’s share; h) Retention limits; i) Automatic and facultative limits; j) Recapture terms; k) Summary of any profit sharing; l) Details of any non-standard exclusions m) Details of any non-guarantee of rates n) Volume statistics – new business o) Volume statistics – in-force business p) Governing Law; q) A summary of any material changes to the structure or terms effected in 2013

Circular Letter to All Life Insurance
Companies and ATTIC Secretariat
February 06, 2014

(2) A confirmation letter from your reinsurer(s) indicating whether:

a) reinsurance premiums due are settled on a timely basis for each treaty; and b) there are any material disputes about recovery on particular claims, the coverage provided, underwriting of risks or the administration of the treaties.

Please also be reminded that in accordance with Section 23 of the Insurance Act Chap 84:01, particulars of any changes to reinsurance arrangements should be submitted within thirty days.

We anticipate your usual cooperation.

Yours sincerely

[Signature]

Michelle Chong Tai-Bell
Chief Actuary
Financial Institutions Supervision Department