What is Reinsurance?
In layman's terminology, Reinsurance is actually a means by which
insurance companies seek to insure themselves against fortuitous
losses. In the reinsurance industry, the mention of losses are usually
huge, running into millions if not billions of dollars. Insurance
companies would be the first to be affected by such losses. Even
before such losses occur, these insurance companies had already
done their homework to know that if such losses happen, they would
need protection against such potential huge losses. Such insurance
companies will seek out Reinsurance companies for these protection.
Reinsurance Business in Singapore
The Singapore government is very keen to promote Reinsurance business
in Singapore. It is the Government's aim to make Singapore the premier
centre of Reinsurance. Under the auspices of the Monetary Authority
of Singapore, Reinsurance companies all over the world have been
attracted to set up office here.
There are in total about fifty Reinsurance Companies domiciled in
Singapore today, Most of these companies are usually branch companies
of MNCs whose headquarters are in Europe, US, Japan and Bermuda.
Employment Prospects
The Reinsurance industry has a wide spectrum of job-opportunities
to offer. Some interesting areas are:
Underwriting
The person who evaluates risk and determines the premium to be charged
on a selected piece of business is known as an underwriter. A Reinsurance
Underwriter will have to assess the technical competence and financial
stability of the direct insurance company. Often, the underwriter
in the Reinsurance industry is required to source and service selected
clientele base in the market. Because most of these Reinsurance
companies are operating on a regional basis, underwriters are also
required to travel extensively.
The underwriters's job requires good analytical mindset; communication
skills, particularly cross-cultural as well as interpersonal skills,
in addition to possessing a wide base of general knowledge.
Accounts
A whole range of functions is involved in this area. It ranges from
normal accounting entries to preparation of balance sheets, Profit/Loss
statements as well as preparation of Returns to the local authority.
There are also opportunities for fund management as Reinsurance
companies are also participants in the money and capital markets'
investment instruments.
IT
People with skills in Information Technology can also find opportunities
in this industry. With computerisation now the mainstay of data
processing, people with such skills are highly sought in the Reinsurance
industry.
Investments
The Investment Manager's job is to invest the reinsurance company's
funds to the best advantage, compatible with the security and nature
of the fund's liabilities.
Personnel
The Personnel Manager devises personnel policies and services which
will enable management to attract, develop and retain the manpower
it requires to achieve its business policies.
Prospects in Reinsurance
Career prospects in this industry are certainly high because of
the fast expanding industry and the shortage of skilled Reinsurance
people in Singapore. Moreover, given the nature of the requirements
for cross-cultural communication, travelling regionally as well
as development of business acumen, people who make the leap into
Reinsurance can look to a challenging career.
| 
