Page 18 - Insurance Times July 2019

Cover Story

NORMS FOR A NEW

REINSURANCE

COMPANY IN A

DEVELOPING

MARKET

A. Emerging Trends Since 1965 instance, ZIM Re in Zimbabwe, East Africa Re in Kenya,
Union Re and Continental Re in Nigeria.
1965-1987 :
Gulf War marked the beginning of Globalisation of WTO
UNCTAD’s guidelines gave rise to the trends favouring
Treaty in January 1995, setting the stage for the trends
Monopoly of Reinsurance with State Owned Reinsurance
of Borderless World of Economies Foreign Direct
Public Sector Companies e.g. Kenya Re, Zim Re, Niegeria Re.
Investments with or without local partner. It gave rise
Regional Reinsurers emerged with obligatory of
to new players in the Third World Markets.
Reinsurance Treaties in African Market. Africa Re, CICA
Increasing number of companies without adequate
Re, PTA Re thus camp up for Trans-African Reinsurances
increase of market premiums.
and also wrote Afro-Asian Reuinsurance.
Ridiculous Rate Reduction in the name of Competition
1987-2000: reducing market premium.
Daregulation, Competition and rise of Private Sector are Exchange Rate Fluctuations inflation resulted into
remarkable features of Era of Liberalisation since Uruguay Imbalance in Liberalised Market.
Round Conference of September 1987 in Rio De Janero. For
2001 Onward:-
About the author
9/11 Attack on WTC with estimated loss of US$ 88.50 billion
was more than Germany’s market premiums! This event
K. L. Naik
was the largest man-made catastrophe breaking all past
Director Naik Consultancy &
records. Back to the basics was the New Millennium’s
Advisors L.L.P
Fundamentals
Mumbai
Financial strength related underwriting capacity

18 The Insurance Times, July 2019