Regulatory Alerts2024-10-23 | 24032Added · Updated
Reinsurance Risk Governance Guideline for Insurers
Local insurers must implement a Reinsurance Risk Management Policy (RRMP) approved by the Board of Directors, which must be reviewed at least every two years for general insurance and every four years for long-term insurance. Insurers are required to notify the Central Bank within twenty business days of any changes to reinsurance arrangements or the expiry of prior arrangements. The guideline mandates specific oversight responsibilities for the Board and Senior Management, including setting net risk retention limits and ensuring adequate due diligence. Additionally, insurers must provide transparent information to the Inspector regarding fronting arrangements, captive insurers, and reinsurance with connected parties, ensuring minimum credit ratings of B+ for related party treaties.