KARACHI (June 28 2004): A new company under the supervision of Pakistan Reinsurance Company (PRC) is being set up with the purpose to undertake reinsurance business in ECO and Central Asian countries.
The total paid up capital of the company will be $30 million and its head office will be located in Karachi.
According to sources, reinsurance business is being conducted by PRC in international market but the new company will lay emphasis on ECO and Central Asian countries.
Sources said that recently the insurance market has become hard and selective in providing reinsurance cover to small reinsurance markets like Pakistan. Therefore, business opportunities in ECO and Central Asian countries have been seen bright.
It is also learnt that a number of brokers and reinsurance companies have either reduced their participation in the region or stopped business altogether.
PRC not only has been providing reinsurance cover to the entire insurance market and ensured that all national assets are protected but also has been providing the capacity to small insurance companies to underwrite the risks beyond their capacity.
Due to this bitter experience, the insurance industry felt the importance of PRC and the necessity of its existence and realised that PRC should play a bigger role in the region.