MEDGULF Receives Circular on Reinsurance Premium Allocation Mechanism for Local Market

The Mediterranean & Gulf Cooperative Insurance & Reinsurance Company (MEDGULF) announced on Sunday receiving the circular of the Insurance Authority on the mechanism for assigning reinsurance premiums to the local market.

According to the company, the mechanism includes that insurance companies, when they wish to carry out reinsurance, shall offer no less than 30% of the contractual and optional reinsurance agreements with companies licensed to practice reinsurance activity in the Kingdom, and reinsurance companies have the right of priority to accept or reject.

It indicated that it has a reinsurance licence and this mechanism represents an opportunity to review the company’s strategy regarding openness to accept additional insurance premiums to be reinsured by local insurance companies, the effect of which will be visible starting from the implementation of the mechanism on Jan. 1, 2025.