MNRB Holdings Berhad’s reinsurance arm, Malaysian Reinsurance Berhad (Malaysian Re), has received approval from Bank Negara Malaysia (BNM) to renew its voluntary cessions (VC) for another three years, until the end of 2024.
The VC sees Malaysian Re receive automatic cessions as well as automatic participation in all domestic facultative reinsurance and treaty reinsurance for the general insurance industry.
“In turn, Malaysian Re will continue to provide additional capacity support through further treaties with domestic general insurers,” MNRB said.
VCs are an arrangement by which all general insurers in the country cede a predetermined percentage of their business to the national reinsurer, Malaysian Re.
As a national reinsurer, Malaysian Re has also provided value added services to the industry, including technical support in surveying, advisory services on risk management, administration of large and specialised risks, as well as organising various capacity-building initiatives.
Additionally, the company plays a key role in supporting the domestic aviation and energy sectors through its management and capacity support of the Malaysian Aviation Pool (MAP) and the Malaysian Energy Risks Consortium (MERIC).
Malaysian Re is also backing Bank Negara’s initiative to build resilience in the industry to climate change.
MNRB said it will continue to support Malaysian Re in its efforts to further its role as the national reinsurer by looking into narrowing critical protection gaps in areas such as business risks for SMEs.
