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Standard Reinsurance Agreement Template for Indonesia

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Key Requirements PROMPT example:

Standard Reinsurance Agreement

"I need a Standard Reinsurance Agreement under Indonesian law for a property and casualty insurance portfolio, with a focus on natural disaster coverage and a retention limit of USD 1 million, to be effective from March 1, 2025."

Document background
The Standard Reinsurance Agreement is a fundamental document in the Indonesian insurance industry that facilitates the transfer of risk from primary insurers to reinsurers. This agreement is essential when insurance companies need to manage their risk exposure and maintain regulatory compliance under Indonesian law. The document must align with OJK regulations, particularly OJK Regulation No. 14/POJK.05/2015 on Reinsurance Business, and Law No. 40 of 2014 on Insurance. It typically includes detailed provisions for risk assessment, premium calculations, claims handling procedures, and reporting requirements. The agreement is crucial for maintaining financial stability in the insurance sector and ensures proper risk distribution while meeting local regulatory requirements.
Suggested Sections

1. Parties: Identification of the reinsurer and cedent company, including their registration details and licenses in Indonesia

2. Background: Context of the agreement, relationship between parties, and purpose of the reinsurance arrangement

3. Definitions: Detailed definitions of technical terms, including specific Indonesian insurance terminology and regulatory references

4. Scope of Coverage: Detailed description of risks covered, exclusions, and territorial limits

5. Premium and Payment Terms: Premium calculation methodology, payment schedule, and currency provisions

6. Claims Procedure: Process for notification, handling, and settlement of claims

7. Retention and Limits: Specification of retention levels and coverage limits in accordance with OJK requirements

8. Duration and Renewal: Term of agreement, renewal conditions, and termination provisions

9. Representations and Warranties: Standard warranties and specific representations required under Indonesian law

10. Obligations of the Parties: Detailed responsibilities of both cedent and reinsurer

11. Reporting Requirements: Periodic reporting obligations and documentation requirements

12. Confidentiality: Provisions regarding confidential information and data protection

13. Dispute Resolution: Dispute resolution mechanisms compliant with Indonesian law

14. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional provisions

Optional Sections

1. Broker Involvement: Required when a reinsurance broker is involved in the arrangement, detailing their role and responsibilities

2. Currency Exchange Provisions: Required for international reinsurance agreements involving multiple currencies

3. Sanctions Clause: Required when dealing with international reinsurance partners to address compliance with international sanctions

4. Special Acceptance Provisions: Required when specific risks outside standard terms may need special acceptance

5. Profit Commission: Optional section for arrangements including profit-sharing mechanisms

6. Portfolio Transfer Provisions: Required when there's a possibility of portfolio transfer during the agreement term

7. Electronic Data Processing: Required when specific electronic systems are used for claims processing or reporting

Suggested Schedules

1. Schedule A - Risk Details: Detailed description of covered risks, limits, deductibles, and special conditions

2. Schedule B - Premium Calculation: Detailed methodology for premium calculation, including rates and adjustments

3. Schedule C - Claims Processing Procedures: Step-by-step procedures for claims handling and settlement

4. Schedule D - Reporting Templates: Standard formats for periodic reports required under the agreement

5. Schedule E - Financial Security Requirements: Details of any collateral or security requirements

6. Appendix 1 - Service Level Agreement: Specific service standards and response times for various procedures

7. Appendix 2 - Contact Details: List of key contacts and escalation matrices for both parties

8. Appendix 3 - Compliance Requirements: Specific regulatory compliance requirements under Indonesian law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































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Relevant Industries

Insurance

Reinsurance

Marine and Aviation

Property and Casualty

Life and Health Insurance

Energy and Natural Resources

Construction and Engineering

Agriculture

Manufacturing

Transportation

Financial Services

Relevant Teams

Legal

Compliance

Risk Management

Underwriting

Claims

Finance

Actuarial

Operations

Regulatory Affairs

Portfolio Management

Relevant Roles

Chief Risk Officer

Reinsurance Manager

Underwriting Director

Claims Manager

Compliance Officer

Legal Counsel

Chief Financial Officer

Actuarial Manager

Insurance Operations Director

Treaty Manager

Risk Analyst

Portfolio Manager

Technical Underwriter

Regulatory Affairs Manager

Industries








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