Reinsurance is a financial transaction by which risk is transferred from an insurance company to a reinsurance company (reinsurer) in exchange of a payment of reinsurance premium.
Club Reinsurance program
The Club arranges the best reinsurance program for its Members/Assureds from the country’s reinsurance market up to USD 100M and, pays catastrophe claims in excess of USD 100M up to USD 1000M.
KPI cedes part of its risks up to 100 million USD to consortium of Iranian reinsurance companies and the rest of it up to 1 billion is covered by the Special reinsurance fund of Iran government. The Central Insurance of Iran takes the major part in the Club’s reinsurance program; however, we have comprehensive range of policies with other strong insurance companies in the country to co-insure risks within the Club’s retention.
We believe in good and long term relationships with our reinsurance and co-insurance partners who help us to remove the underwriting barriers.
– The Kish P&I Club Retention and Excess of loss Reinsurance
Under Article 71 and 73 of Insurance Operation Law of Iran All insurance companies operating in Iran shall be obliged to reinsure with Central Insurance of Iran under the compulsory reinsurance terms and conditions and also according to Companies solvency and abilities considered by Central insurance of Iran Solvency regulation No. 68.
KPI has two main reinsurance contract as below:
1- The US$ 1 Billion Excess of loss reinsurance contract with 6 layer and retention layer of 2 million USD (This is only for mutual entries). Which is intended to protect the Members/assured against Oil Pollution Claims.
2- Facultative excess of loss contract with 2 layer, first layer for covering up to 50 million USD which is quota shared with a consortium and the other layer for covering up to 1 billion USD with Special reinsurance fund (This is only for Fix entries).