PRCL operates in the following departments to conduct its business:

• Fire
• Marine
• Engineering
• Accident
• Aviation
• Treaty & Business Development department Services

It is mandatory for PRCL to accept suitable percentage of reinsurance business from the general insurance companies operating in Pakistan for whom it is obligatory to offer atleast 35% of their surplus to PRCL.

PRCL being a progressive entity, always keeps itself engaged by being actively part of major international forums and platforms.

It actively participates in international forums such as Economic Cooperation Organization (ECO) and Federation of Afro-Asian Insurer and Reinsurer (FAIR).

The objective of this collaboration is to reduce the outflow of foreign exchange and improve the statements of insurance and reinsurance services in the Region .

PRCL is also one of the pioneering and founding members of (FAIR).

BACKGROUND 

    The Economic Cooperation Organization (ECO) originally named Regional Cooperation for Development-(RCD) 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.  The Insurance Industry was one of the domains where concerted action came early. The Reinsurance Organizations of the three countries came together and decided to establish of Reinsurance Pools of various classes of non-life business resulting in the following setup: 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 both within and outside the RCD region (Iran, Pakistan and Turkey) and the retention capacities of their members.  With the aim of rationalizing the administration procedures the Management Board of RCD Reinsurance Pools decided to merge these into a single integrated Reinsurance Pool encompassing all classes of non-business. The integrated RCD Reinsurance Pool which was entrusted to the management of the Milli Reassurance. T. A. S. started its activities on the 1st of January 1975 and has ever since been gradually enlarging their scope and diversifying these successfully.  Representatives of the three Founder countries (Iran, Pakistan and Turkey) met in Istanbul on July the 7th 1985 and decided to change the name of RCD Reinsurance Pool into ECO Reinsurance Pool. The membership of ECO member countries increased to include six newly independent states of Central Asian Countries liberated after break up of U.S.S.R. namely Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, Kazakhstan, Azerbaijan and also Afghanistan.  As per decision of the Foreign Minister of the Islamic Republic of Iran, Islamic Republic of Pakistan and the State Minister for Economy of the Republic of Turkey during a special meeting of the E. C. O. Council of Minister on 15th March 1995 at Islamabad, decided to transfer the Headquarter of the ECO Reinsurance Pool to Karachi/Pakistan with effect from 01.01.1996.  

FIELD OF OPERATION AND GOALS

    The ECO Reinsurance Pool accepts all classes of non-life reinsurance and retrocession business excluding aviation, motor, credit and bonds business, except where incidental or part of a bouquet.  The original of the business is from the three founder Regional markets (Iran, Pakistan and Turkey) and outside the ECO region consisting essentially of America whether ceded directly or indirectly is expressly shunned.  The ECO Pool’s goal are the fostering of cooperation among its members providing in the process, an additional and highly valuable underwriti8ng capacity for ECO region and the Third World with a standard of reinsurance service equal to that provided by the international market, and; by matter of consequence, the improvement of member national insurance companies reinsurance terms increasing their retentions, and; securing savings and even earnings of foreign exchange for the member companies and, therefore, their respective countries’ economies.

MEMBERSHIP

    All the insurance and reinsurance companies from the ECO Region and the Third World, in general are eligible to participate in the Pool.  The process is incepted by the companies willing to cede business to the Pool forwarding its Managers the relevant particulars and statistics. The managers after a through study accept these offers or decline to do so on the basis of their merits.

RECIPROCITY BY OF RETROCESSION

    After pooling the acceptances of the Pool, the entire business is retroceding back to the participating companies on original terms and conditions.  Ceding companies can choose to participate in the Pool’s retrocession business or opt for a non-reciprocal relationship.  The business thus retrocede by the Pool is well balanced and fully retainable by the participating companies on their account.  The retrocession shares to be allocated to the member companies are fixed every year according to the percentage of their cessions to the total premium ceded to the Pool in that year.  However, the reciprocity which, in principle, is of almost 100% may be of more or less than 100% the exact proportion of which is determined by considerations such as longstanding profitability, constant increase in volume of cessions and prompt settlement of due balances.

EXCESS OF LOSS PROTECTION FOR COMMON ACCOUNT

     The ECO Reinsurance Pool’s Regional and Outside the Regional business is protected by a common account umbrella of excess of loss cover with an upper limit always above the Pool’s maximum liability per market/ per risk which is reviewed each year by the Technical Committee which is a sub committed of the Management Board of ECO Reinsurance Pool.

THE MANAGEMENT OF THE ECO REINSURANCE POOL

    The Managers are appointed by the Pool’s Management Board, its supreme organ, to carry out all the administrative work necessary for the proper functioning of the Pool.  The Management Board has entrusted the Management of ECO Reinsurance Pool to Pakistan, i.e., Pakistan Insurance Corporation w.e.f. 01.01.1996. The pool maintains its account with the following banks:- National Bank of Pakistan,U.S. $ A/C No. 110126-8,Main Branch I.I. Chundrigar Road,Karachi-74000, Pakistan. National Bank of PakistanPAK RS. A/C NO. 1632-5, (Expense) P.N.S.C. Building Branch,M.T. Khan Road, Karachi-74000Pakistan. National Bank of Pakistan PAK RS. A/C NO. 1631-6, (Business)P.N.S.C. Building Branch, M.T. Khan Road, Karachi-74000Pakistan.  E. C. O. Reinsurance Pool Managers

Pakistan Reinsurance Company Limited.