The Company shall prepare a three-year plan and submit it to the Board of Directors for approval concerning the Retention and Reinsurance for each type and class of insurance types and classes that company carries out, based on the nature of the underwritten risks, the number of companies and their accumulation and based on available statistical data on loss ratios in each class of insurance and its trends and future projections affecting those potentials.
The plan shall be reviewed annually during the three months prior to the commencement of each year in order to amend whatever is required to be amended in light of the experience achieved during the previous period.
The Plan (and the amendments made to it at the time of review) shall be submitted to the Board of Directors of the company for approval.
The plan shall include at least the following main lines:
Retention and Reinsurance treaties limits and the ceded Facultative Reinsurance operations.
The type of reinsurance treaties (proportional: quota-share or surplus, non- proportional: Excess of loss or stop loss) or a program combining the aforementioned types.
Facultative reinsurance ceded locally and abroad and facultative obligatory reinsurance covers.
The leading reinsurer and follower reinsurers, their credit rating and monitoring the accumulation cases.
The Reinsurance brokers to be contracted with the Company and the reasons for their selection.
How to protect the company's retention in cases of accumulation or catastrophes and in cases of unknown accumulation.
The Commissions payable to the Company and whether they are flat or variable according to the loss ratios and profit commissions and rules of their calculation.
In the case of unforeseen events that require amendment of the plan during the year, the company's management shall take and implement the necessary procedures, provided that those procedures and their causes and results shall be presented to the company's board of directors at the first subsequent meeting.