Nepal Reinsurance Company Limited
Thapathali, Kathmandu
A Short Report on
“Nuts & Bolts” of Treaty Reinsurance:
Proportional Treaty Reinsurance and Non-Proportional Reinsurance
Nepal Reinsurance Company Limited
Thapathali, Kathmandu
Submitted By:
Damodar Bhandari
Laxmi Paudel
Saroj Lamichhane
Introduction:
Background Nepal Reinsurance Company Limited, the successor of insurance pool that was set
up in 2003 with the aim to cover damages caused by the terrorism, was incorporated on 7th
November 2014, under the companies act 2006 of Nepal in accordance to the decision of Council
of Ministers dated 7th august 2014 to convert the insurance pool, Nepal into Reinsurance
Company. It is established in the PPP model with equity participation of Government of Nepal,
insurance companies (both life and non-life) as well as the public limited companies operating in
Nepal. It was established with an objective to enterprise reinsurance business in Nepal and
contributes towards the economic growth of the country. It also contributes in the national as
well as international risk management. The first reinsurance company, from the date of
establishment is committed to give fuel for insurance business in Nepal through risk sharing and
enabling insurance companies to assume more risk. It works as a backup force in case of risk-
taking business. it has contributed for the retention of foreign exchange and also plays vital role
in foreign exchange earnings through purchase of risk from many of the international reinsurance
companies. Nepal reinsurance company, from the date of establishment had performed very well
for the development of insurance sector, risk sharing, enabling insurance companies to take part
in more business, capacity building of all insurance companies including its own staffs and
relation building.
In this connection, The 5 Days Training Program on “Nuts & Bolts” of Treaty Reinsurance”
from 11 August 2025 to 16 August 2025 at Singapore College of Reinsurance seems to be highly
valuable training program for the designated official of the Nepal Re.
Summary
Name of Training “Nuts & Bolts” of Treaty Reinsurance: Proportional Treaty Reinsurance
“Nuts & Bolts” of Treaty Reinsurance: Non-Proportional Treaty
Reinsurance
Program Date 11th August 2025 to 16th August 2025
Program Venue Singapore College of Insurance/ Parkroyal Collection at Marine Square,
Singapore
Participants 23 Participants from Different Insurance/Reinsurance Company and
Reinsurance Broker Company including officials from Nepal Re (3
Officials)
Resource Persons Mr. Peter Cave
Training Objective To make participant aware of the basic to advance aspect in general Reinsurance
Treaty (Proportional and Non Proportional)
Summary of the Training
Day 1 and Day 2
- Departure for Singapore and Arrival
Summary of the Training
Day 3 and Day 4
- Mr. Peter Cave
- Introduction
- Role of Reinsurance
- Why Reinsurance
- Different types of Reinsurance Products
- Case Study
- Functionality of Proportional Reinsurance
- Some of the Terms used in Proportional Treaty Slips
- Accounting Concept for Proportional Treaty
- Case Study
Summary of the Training
Day 5, 6 and Day 7
Mr. Peter Cave
- Introduction to Non-Proportional Reinsurance
- Different types of Non-Proportional Reinsurance
- Functionality of Non-Proportional Reinsurance
- Basic Concepts in CAT Modeling and Exposure Management
- PML and Sum Insured Basis of Underwriting
- Alternative Risk Transfer
- Global Trend in ART
- Hard and Soft Market Cycle in Global Reinsurance Market
- Recovery Management
- Designing Non-Proportional Treaty
- Pricing Non-Proportional Treaty
- Case Study
Summary of the Training
Day 8
Return Back to Nepal
Conclusion:
The “Nuts & Bolts” of Treaty Reinsurance: Proportional Treaty Reinsurance and “Nuts & Bolts”
of Treaty Reinsurance: Non-Proportional Treaty Reinsurance was quite fruitful for the new
beginners in the Insurance and Reinsurance Market. This training definitely opened the gateway
for learning more in the area of Reinsurance.
Nepal Reinsurance Company Limited
Thapathali, Kathamandu
Basics of Aviation Insurance Training
List of Participants from Nepal Re
S.N. Name Designation
1 Damodar Bhandari Assistant CEO
2 Laxmi Paudel Senior Manager
3 Saroj Lamichhane Deputy Manager
Some Glimpse of Training Program
