This document provides information about Pakistan Reinsurance Company Limited (PRCL), including its departments, major clients, role in economic development, and recommendations. It notes that PRCL was established in 1952 and has departments specialized in fire, marine, engineering, accident, aviation, and assists the economic cooperation organization pool. Major clients include large energy and infrastructure companies. PRCL aims to support the local insurance industry and collaborate internationally on reinsurance. It contributes to Pakistan's economic growth.

1. Group Members
 Zubair younis F14-39
 Jawad Bashire F14-37

3. Introduction of Company
 Pakistan Reinsurance Company Limited, PRCL was established in 1952 as Pakistan
Insurance Corporation under PlC Act 1952 in order to support local insurance
industry.
 PRCL is a public sector company under the administrative control of the Ministry
of Commerce. The Company headed by a Chairperson The Company is supervised
by the Board of Directors. Amongst which seven are nominated by the Federal
Government, whereas, the other directors are elected by the shareholders
 Its insurance market holds 18% of the share whereas 45% of the share is covered
by the reinsurance protection in Pakistan.

4. Objective
 To underwrite all facultative acceptance from the cedants i.e. insurance
companies of Pakistan
 To manage and supervise, treaty portfolios of the insurance industries
 To assess and process claims and if necessary their recovery from the excess of loss
reinsures participants
 To guide and assist its clients in complex reinsurance matter

5. Departments
 The Fire Department has specialized expertise in the following areas:
 Building
 Building and contents
 Stocks
 Machinery
 And other Insurable interest
 The fire department has a share of 27% of PRCL total revenue. The clients of
this department include local insurance companies in Pakistan and also
foreign reinsurance

6. Marine department
 The Marine Department was established during the initial period of the
establishment of the company divided into following categories:
 Marine Cargo
 Marine Hull
 Marine Cargo is concerned with only cargo within the particular vessels whereas
Marine Hull deals with reinsurance of machinery/ body of the boat. Both Marine
Cargo & Marine Hull departments make primary decision with respect to
acceptance of the risks by means of Facultative and Treaty

7. The Marine Department specializes
 All types of Cargo (whether by Road, Rail, Air, and by Sea).
 Hull & Machineries.
 Freight and Ship Breaking Risks.
 Pleasure Boats.
 Third Party Liability.
 This department consists of professionally competent employees headed by a
proficient Officer.

8. Engineering
 The Engineering Department specializes in reinsurance coverage of the
following risks to the local insurance market including M/s. National Insurance
Company (NIC) through treaty agreements and facultative placements.
 Property Damage
 Business interruption
 Machinery breakdown/Boiler
 Contractor All Risks (CAR)
 Erection All Risks (EAR)
 Third Party Liability (TPL)

9. Major clients
 It provides the engineering risks coverage to the following major clients and
helps in reconstructing the infrastructure across the country and promoting
industrialization.
 Pakistan Arab Refinery Limited (PARCO)
 Pak Arab Pipeline Company Limited (PAPCO)
 Kot Addu Power Company Limited (KAPCO)
 Oil & Gas Development Company Limited (OGDC)
 Control of wells
 Qadirpur Gas Plant
 UCH Gas
 Sarhad Hydel Power Project
 Chashma Nuclear Power Project

10. Accident
 . The department specializes in provision of reinsurance coverage to local Insurance
companies as well as foreign based companies accommodating the acceptance/retro
business.
 Accident department of PRCL deals with Motor/Liabilities business and accept all
Motor/Non-motor risks ceded by local insurance companies. The motor risks
constitute all private and commercial modes of transportation. The Non-motor
includes the following areas:
 Workman Compensation
 Fidelity Guarantee
 Employers Liability
 Professional Indemnity
 Personal Accident
 Health Insurance
 Crop insurance

11. Aviation and Aerospace
 The aviation department is a part of PRCL since It’s origin. It specializes in the aviation
reinsurance arrangement to private insurance companies It offers expertise for the
coverage’s in the following risk areas
 Hull (Body of the Aircraft), Spares, Liabilities
 Cargo
 Hi-jacking and terrorism
 Hull and Spares War
 Personal Accident to Crew
 Personal Accident to Passenger
 For all the above mentioned risks, due covers for the risks are arranged in the
International Aviation Market most beneficiary This department makes a contribution of
more than 20% of the entire underwriting profit

12. ECO Pool:
 The Economic Cooperation Organization was set up by Iran, Pakistan and Turkey at a conference
held in Istanbul in July 1964 with the aim of bringing the economies of these three countries
closer together and thus enhances their chances of development
 HISTORY OF ECO POOL:
 Three countries came together and decided to establish of Reinsurance Pools
 Bimeh Iran (later replaced by Bimeh Markazi Iran) constituted the RCD Accident and Engineering
Reinsurance Pools (1966 and 1968 respectively).
 The Pakistan Insurance Corporation constituted the RCD Marine and Aviation Reinsurance Pools
(1966 and 1968 respectively).
 Milli Reassurance T. A. S. of Turkey constituted the RCD Fire Reinsurance Pool (1966).
 The goal of these various RCD Pools was to increase the volume of business transactions

13. Role in Economic Development
 The role of PRCL in economic development of Pakistan is significant. PRCL awareness
of increasing requirements of insurance and reinsurance of a progressive economy is
making great efforts in coming up to national expectations
 Pakistan Reinsurance Company Limited is actively collaborating and participating
with its international counterparts in the field of insurance and reinsurance
 This is being achieved under the aegis of Economic Cooperation Organization (ECO)
with the object of reducing the outflow of foreign exchange and improving the
standard of insurance and reinsurance services in the region
 Pakistan Reinsurance Company Limited has been one of the pioneers and founder
members of the Federation Afro-Asian Insurers and Reinsurers (FAIR).

14. Contribution of insurance company to the growth of SMEs
 SME is a business that is privately owned and operated with a small number of
employees
 In Uganda there are approximately 1,069,848 SMEs currently in operation and they
comprise over 90% of the private sector
 Economy, investment and finance reports (2010) defines insurance as a policy from
a large financial institution that offers a person, company, or other entity
reimbursement or financial protection against possible future losses or damages.
 SMEs often face a variety of problems related to their size. Frequent causes are
bankruptcy, theft, fire, death, automobile accidents and workers injuries

15. Minimize risk
 There are many types of risk that will be encountered in business. Some are
controllable while others are not so insurance company provide the protection against
the risk
 Covered the losses

16. Marketing system in life insurance
 insurance company must have an effective marketing system to survive as a going concern.
 . The agency department (a.k.a. production department) of the insurance company is its
marketing division, hiring sales agents and providing assistance to their sales efforts. Often,
a special agent serves as the intermediary between the agency department and the sales agent.
 such as term life insurance the direct response system is the most cost effective for the
consumer
 Direct response marketing solicits business through advertising through traditional media, by
telemarketing,
 The agency building system involves hiring and training new agents that represent only the
insurer
 The managerial system insurer opens a branch office and hires a manager, who is an employee
for the insurer and represents only the insurer
 Property insurance companies use basically the same sales techniques that life insurance
companies use: direct response and agents

17. Ratio analysis
 Loss ratio = 0.1901
 Expense ratio = 0.1318
 Combined ratio = 0.3219
 Investment ratio = 0.2331
 Overall operating ratio =0.0887

18. RECOMMENDATIONS
 . The small business owners and their staff should be trained on various forms of
risk that their business could be exposed to and how to manage such risks.
 The government should establish a specialised micro insurance scheme or agency for
the SME’s, just like that of National Health Insurance Scheme (NHIS) to enhance
easy and cheaper accessibility