Kathmandu: Nepal Reinsurance Company has made public the list of reinsurance brokers in the fiscal year 2078/79. Most of the 26 companies that have been made public are brokers from India.
In Nepal Reinsurance, the company has made public the list of reinsurance brokers under the Nepalre Retro Program to transfer its risk to other reinsurers. Under retrocession, the reinsurance company enters into a risk sharing agreement with the broker based on the business it receives.
Apart from India, there are broker firms from Dubai, Mauritius, Bahrain, Indonesia and Singapore. The retro program distributes risk among reinsurers. The concept of risk-sharing through a joint fund for reinsurance companies to bear the financial burden of large risks is called retrocession. This helps to increase the risk-bearing capacity of reinsurers. The concept of retro program has been gaining strength in recent years.
Its strategic purpose is to protect the capital of companies in reinsurance, to manage the risk of reinsurers, and to prevent the heavy burden of claims on reinsurers from a single event to be effective.