Reinsurance Industry Contribution Award -- Central Re

As the largest domestic reinsurance company in Taiwan, Central Re has set its sights at being the leading authority on managing risk and capital and delivering attractive returns to shareholders. At the same time it seeks to maintain top financial strength and leverage its intellectual capital as part of its contribution to the insurance industry.

In order to achieve these aims, the company has sought to maintain a high level of risk diversification, proper growth in premium and an optimal capital structure.

As part of its dedication to the industry Central Re also plays a leading role in supporting the insurance regulator, The Insurance Bureau of the Financial Supervisory Board, with regard to scrutiny of new products and regulatory issues. The most significant example in recent years is the Taiwan Residential Earthquake Insurance Pool (TREIP), a nation-wide earthquake pooling scheme for residential houses. It started operations on 1 April 2002 after the disastrous Chi-Chi earthquake of 21 September 1999.

Because of Central Re’s role, the Financial Supervisory Board awarded the company the position of TREIP Pool Manager responsible for handling all the administrative work, risk control and the arrangement of reinsurance protection.

Central Re also plays a leading role with the Taiwan Insurance Committee submitting its feedback and professional opinion in the sub-committees, assisting with the introduction of various new products such as personal accident, professional indemnity, accident & health, poison products liability
and terrorism pool. Its role with new product introduction includes guidance on the underwriting, policy wording and rating procedures.

In August 2003, a catastrophe bond was introduced by Central Re and integrated with the traditional reinsurance for TREIP. The company continues with its efforts to provide strong safeguards against the financial consequences of natural disasters in Taiwan, and is now considering issuing other catastrophe bonds or using another method of alternative risk transfer.

These are but some of the examples of the responsible way Central Re supports the local industry and goes to show why they are worthy winners of this inaugural award.