OUR SERVICES

WHAT IS INSURANCE

Insurance is defined as “a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme”. It involves a group of people agreeing to share risks.

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.

WHAT IS REINSURANCE

Reinsurance is a contract under which one party, the reinsurer, undertakes to support the other party, the cedant, in respect of the latter's involvement in original risks.It allows a direct insurer to strengthen its balance sheet by reducing its liability for loss and replacing that liability with an asset.

FUNCTION OF REINSURANCE

Well planned and carefully considered reinsurance arrangements will:

• Protect the direct insurer from underwriting losses which may weaken his solvency.
• Stabilize underwriting results on an overall basis.
• Increase the financial capacity of an insurer in respect of the size and type of risk he can underwrite
• Spread the risk of loss
• Additional revenue to insurers
• Economic and Social Development
• Transfer of technological knowledge
• Protection against catastrophic (CAT) losses