Section 9: Reinsurance

9. Reinsurance (1) An insurer licensed under this Part shall not underwrite or reinsure risks from another insurer or otherwise carry on reinsurance business except where— (a) it is licensed as a professional reinsurer to carry on solely reinsurance business; or (b) it is otherwise authorised expressly by the Commission on such conditions as it may deem fit. (2) Notwithstanding section 8, a professional reinsurer licensed under section 11 may carry on reinsurance business of any category or of any classes except where specifically restricted. (3) Subject to subsection (4), nothing in this section shall be construed as a requirement for a reinsurer organised under the laws of any country outside Mauritius from underwriting risks from insurers in Mauritius, to be licensed under this Act. (4) The Commission may specify in the FSC Rules— (a) the conditions under which risks situated in Mauritius may be ceded to a reinsurer; (b) the classes of reinsurers to whom risks underwritten by insurers in Mauritius may be ceded. (5) (a) Notwithstanding subsection (4), an insurer shall offer to cede to a statutory reinsurer such percentage of its relevant risks as may be prescribed. (b) For the purposes of paragraph (a)— “relevant risks” means risks reinsured by way of a treaty; “statutory reinsurer” means any reinsurer approved by the Commission. (6) The Commission may exempt any insurer from compliance with the requirements of subsection (5), wholly or in respect of any description of relevant risks, if it is satisfied that it is necessary or appropriate to do so in the circumstances. (7) The Minister may make such regulations as he deems necessary for the purposes of this section, to provide for professional reinsurers. [S. 9 amended by s. 4 of Act 16 of 2007 w.e.f. 28 September 2007.]