1. Purpose

The purpose of this Underwriting and Reinsurance Policy is to establish clear guidelines and procedures for underwriting practices and reinsurance arrangements at Meghna Insurance Company Limited (MICL). This policy aims to ensure sound risk management, effective underwriting processes, and proper utilization of reinsurance to protect the company’s financial stability.

2. Scope

This policy applies to all employees and stakeholders involved in underwriting and reinsurance activities at Meghna Insurance Company Limited.

3. Underwriting Guidelines

3.1 Detailed Underwriting Manual/Guideline: MICL shall follow underwriting manual/guideline provided by Insurance Development and Regulatory Authority (IDRA). This manual shall provide detailed instructions and criteria for assessing risks, setting premium rates, and determining policy terms and conditions.

3.2 Risk Assessment: Underwriters shall assess each risk meticulously, considering factors such as the insured’s financial stability, loss history, and other relevant information. The underwriting process shall adhere to the guidelines outlined in the underwriting manual.

3.3 Pricing and Rate Adequacy: Premium rates shall be set in accordance with the underwriting manual, ensuring they are adequate to cover expected claims and expenses while maintaining competitiveness.

3.4 Policy Terms and Conditions: The underwriting manual shall define policy terms and conditions, including coverage limits, deductibles, and exclusions, to be applied consistently across all underwritten policies.

4. Reinsurance Arrangements

4.1 Local Reinsurance Partners: MICL maintains reinsurance arrangements with Sadharon Bima Corporation to manage and mitigate risk exposure effectively. These arrangements shall be established and maintained in accordance with local regulatory requirements.

4.2 Treaty Limit Existence: The Company shall establish treaty limits for each reinsurance partner based on the company’s risk exposure, financial capacity, and reinsurance program objectives. Treaty limits shall be reviewed and adjusted periodically to ensure alignment with the company’s risk management goals.

4.3 Reinsurance Contract Review: All reinsurance contracts shall be reviewed by the designated reinsurance department and legal team to ensure compliance with regulatory requirements and alignment with the company’s risk management strategy.

5. Risk Management

5.1 Risk Monitoring: MICL shall employ robust risk monitoring processes to regularly assess the performance of underwritten policies and the effectiveness of reinsurance arrangements.

5.2 Claims Management: The claims department shall work closely with underwriters to monitor and manage claims efficiently, with a focus on prompt settlement and loss control.

6. Compliance and Reporting

6.1 Regulatory Compliance:  MICL shall ensure full compliance with all relevant local and international regulatory requirements pertaining to underwriting and reinsurance.

6.2 Reporting: Regular reports on underwriting and reinsurance activities, including risk exposure, treaty utilization, and claims performance, shall be prepared and submitted to senior management and regulatory authorities as required.

7. Training and Development

7.1 Employee Training: MICL shall provide continuous training and development opportunities to underwriters and reinsurance staff to ensure they remain up-to-date with industry best practices and changes in underwriting and reinsurance regulations.

8. Review and Revision

This Underwriting and Reinsurance Policy shall be reviewed annually and revised as necessary to reflect changes in business strategy, regulatory requirements, and market conditions.

9. Conclusion

Meghna Insurance Company Limited is committed to maintaining high standards of underwriting and reinsurance practices to safeguard its financial stability and provide reliable insurance services to its clients. Compliance with this policy is mandatory for all employees and stakeholders involved in these activities. MICL received the right to revise the policy as and when necessary basis.