Can Insurance Enterprises Reinsure with Another Insurer?
According to the provisions of the law, reinsurance business is an activity of an insurer aimed at generating profit, wherein the insurer receives a premium from another insurer to commit to compensate for the liabilities underwritten.
Additionally, in Clause 4, Article 1 of the amended Law on Insurance Business 2010, it is stipulated as follows:
Insurance enterprises may reinsure with other insurers, including foreign insurers and foreign reinsurance organizations. Foreign insurance enterprises and foreign reinsurance organizations must meet the credit rating requirement according to the ratings of international credit rating agencies as prescribed by the Ministry of Finance.
=> Thus, according to these regulations, an insurer can fully reinsure with another insurer.
Respectfully!
