Reinsurance companies in Malaysia equip clients with financial security against
catastrophic events. Here are some common reinsurance products available in the market.
What Are the Reinsurance Products Available on The Market?
What can businesses, governments and communities do to navigate the economic and business
landscape that is increasingly filled with uncertainties? Reinsurance companies in Malaysia
provide solutions for diverse clients to equip them with financial security against catastrophic
events. Insurers pay reinsurance company premiums and receive financial protection in
exchange for covering losses above certain limits to reduce the maximum possible loss. Here are
some common reinsurance products available in the market.
1. Aviation reinsurance
Aviation reinsurance offers the aviation and space industry financial coverage for various risks,
such as territorial conflicts, aviation war and political violence. Companies cover a wide range of
exposure for aviation reinsurance — non-major risks treaty coverage covers all aircraft vehicles
from personal-use light aircraft to heavy industrial-aid jets, while major risks treaty coverage
covers large-scale catastrophes such as war and geographical conflicts worldwide. Recently, the
Ukraine-Russia war has had repercussions on aviation insurance, as costs are predicted to
increase by 30 to 40 per cent — reflecting the need for aviation reinsurance.
2. Agriculture reinsurance
Agriculture is an indispensable sector of the world's economy as it produces food and crops to
feed our large human population. There are various processes involved in agriculture production,
from seedling to harvesting, but what exactly does agriculture reinsurance covers? As we know,
crop harvests are largely dependent on the weather and natural resources availability, therefore
reinsurance aims to cover farmers' financial risks and production shortfall risks of stakeholders,
such as input suppliers or grain processors. Besides, some reinsurance products also offer
coverage for growing crops in selected areas with limits.
3. Marine reinsurance
Insurers in the marine industry face unprecedented challenges, including intense pricing
competition, unstable economic conditions and labour shortages, further exacerbated by the
pandemic. Marine reinsurance provides coverage of various aspects of maritime activities. Some
specific marine reinsurance products are cargo reinsurance that insures valuable items (jewellery,
species, fine arts) that are transported, marine liability encountered by ship owners, freight
forwarders or warehouse operators, and offshore energy reinsurance that covers drill ships,
supply vessels and storage facilities.
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Malaysian Reinsurance Berhad (Malaysian Re) is Malaysia's largest reinsurer, commanding more
than 60% of reinsurance accepted premiums in the country. The team comprises experienced
marketing executives, technical experts and underwriting specialists to provide businesses with
quality reinsurance products and services. Malaysian Re underwrites all classes of general
reinsurance business and general retakaful business, with an extensive business portfolio across
Asia and the Middle East.
Visit https://www.malaysian-re.com.my/our-insights for valuable insights
into the reinsurance industry.