Reinsurance

Reinsurance

Reinsurance - this category or field of insurance activity emerged immediately after direct insurance. What is the difference between insurance and reinsurance? In fact, the differences are not great. One of the main ones is that a reinsurance company does not conclude a contract with the client and bears no obligations to the client; the contract is concluded with the insurance company, on terms that may differ significantly or in many respects from the original insurance contract. The risks most commonly ceded to reinsurance are property risks, oil risks, aviation risks, energy risks and, less often, motor insurance and construction and erection risks insurance.

Why reinsurance is needed

When a large risk is involved, an insurance company is not always able to meet its obligations effectively. To reduce its exposure to an individual risk or a set of risks, the insurance company needs to spread it among insurance market participants, often on the global market, which ensures the insurer's financial stability if an insured event occurs.

Reinsurance terms

Sometimes the reinsurance terms an insurance company obtains are much better than those it gave its client, but only because the insurance company cedes more risks and pays more premiums.

A reinsurance contract may also be less favourable for the insurer; for example, the insurer may retain the greater part of the risk and additional conditions for a smaller share of the insurance premium.

Reinsurance companies

Any company licensed to carry out reinsurance activities can reinsure a risk, and it can accept risks from anywhere in the world. Reinsurance and rates are often determined on the basis of international ratings (International ratings of Kazakhstan insurance companies), below are some reinsurance companies

• Munich Re
• Hannover Re
• Partner Re
• R+V
• Odyssey America Re
• Korean Re
• Liberty Syndicate
• Sava Re
• Lansforsakringar Sak Forsakrings AB
• OSAO "Rossiya"
• OAO "Russian Reinsurance Company"
• ZAO "AVIKOS"
• OAO "ROSNO"
• OSAO "Ingosstrakh"
• ZAO "Kapital Reinsurance", etc.

This list of insurance and reinsurance companies is not exhaustive, for the following reasons:

1. Kazakhstan insurance companies may arrange reinsurance with virtually any reinsurance company that meets the requirements of the law.

If necessary, for more detailed advice please contact the insurance brokers and agents listed in the Association's register.