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Devoted To Enrich Your Life Wherever You are


When an insurance company defends itself with other insurance companies against the risk of losses is called Reinsurance. Individuals and corporations take insurance policies to provide a safeguard for various risks like hurricanes, earthquakes, lawsuits, collisions, sickness, and death, etc.. Reinsurers, in turn, provide insurance to insurance companies.

Reinsurance is an expansion of the concept of insurance, in that it passes on part of the risk for which the original insurer is liable. Reinsurance is just that the ‘insured’ is another insurer, known as the ‘reinsured’.

By distributing risk, reinsurance allows the insurance industry to function more effectively. Reinsurance allows insurance companies to write larger amounts of insurance, protects against large losses, helps insurers to protect their internal business against swings in business cycles and stabilizes their year to year operations, and helps provide underwriting expertise for new lines of insurance or new markets. Before reinsuring companies have to consider whether they require reinsurance or not, If they required, what type of reinsurance is most accurate, What level of reinsurance is required to ensure an appropriate mix of surplus protection versus the potential for retaining profit within the captive, How to purchase reinsurance and from whom to purchase the reinsurance. Reinsurance companies are usually very large, well funded and have widespread operations.

Re-insurance may simply be said as a share of risk-cover. It is with a view to ensure easy payment of death claims of all amounts that fall within the acceptable limit of the re-insurer except own retention limitation of the ceding company as per agreement. Re-insurance agreement is executed on mutual understanding and interest between the ceding company and re-insurance company on payment of fixed re-insurance premium by the ceding company to the re-insurance company. All these are for greater benefit of the policyholders directly and indirectly.

Sunlife Insurance Company Ltd. always follows standard rules of re-insurance rigidly and submits all information regarding any change or irregularity to the re-insurance company for prompt settlement of death claims escaping any objection or error.

At present, a re-insurance agreement has been executed between  Sunlife Insurance Company Ltd. and re-insurance company Trust Re, Bahrain, for 3 years with effect from 1st July 2018. Earlier to this, Sunlife Insurance Company Ltd. continued such a contract with Asian Re-Takaful Malaysia.