CHAMPIONS REINSURANCE INDUSTRY
EVER since NamibRe came into force by way of an Act of Parliament 16 years ago, it has been solidifying its role as a champion of the re-insurance industry.
Before it was established, there was a serious and significant gap in the business of reinsurance in the country in general. As a direct result, Namibian insurance companies purchased reinsurance from outside the country. It can only be imagined what substantial amounts of capital left the country during that period.
The visionaries of the Land of the Brave, demonstrating innovative thinking, approached and engaged the law makers to address the lacuna. Subsequently through extensive consultation with all the relevant stakeholders, the country witnessed a proud milestone moment when the Namibia National Reinsurance Corporation was established by an Act of Parliament (Act No.22 of 1998). This event set the table for NamibRe to become a truly Namibian enterprise tasked with carrying out reinsurance business in Namibia.
In line with its statutory mandate, its vision revolves around becoming the preferred reinsurance company on the African continent. The company remains geared towards accomplishing this very attainable objective.
Moreover, NamibRe’s mission is to provide professional and quality reinsurance services to their clients and to maximise the return on the shareholder investment. Its track record has proven that it has been leaving no stone unturned to comply with this mission and beyond.
Mrs Patty Karuaihe-Martin as the captain of the NamibRe ship has been committed to enhance the well-being of her team by embracing competency development initiatives and ensuring equitable conditions of employment.
True to its form, NamibRe has also been consistently providing quality service to all their clients whilst maintaining high standards and embodying the values of honesty and transparency in every single one of their ventures.
At this juncture, it might be imperative to revisit exactly what constitutes reinsurance. This would shed more light on the activities of NamibRe which are in line with its statutory purpose.
Essentially, reinsurance in the most basic sense is insurance for insurance companies, that is purchased by an insurance company (the “ceding company” or “cedent” or “cedant” under the arrangement) from one or more insurance companies (the “reinsurer”) directly or through a broker.
The primary purpose of such a transaction between the ceding company and the reinsurer is risk management. Therefore, any insurance company cannot and may not accept a level of risk that does not correspond to the level of resources on its balance sheet, against which that risk can be leveraged.
What this means in practice is that there is a direct relationship between the risk and the resources required to shield it. Where a large project or assets need to be insured, the risk of which is bigger than the insurer can take on, the excess risk will be passed on to a reinsurer via a risk sharing arrangement. The reinsurer then carries this risk against its balance sheet. Where the risk is very large, more than one reinsurance company might be needed to carry the full extent of the risk.
As per its mandate, NamibRe transact Facultative and Treaty business in the following classes:
- Vehicles and Associated Liabilities
- Guarantee Business
- Personal Lines
- Marine Hull, Cargo and Liabilities
- Engineering Risks
- Medical Insurance
- Special Riot Risk