Relationship between Reinsurance and MIU

The relationship between Social Re and the MIU is dependent upon two regulatory aspects:

— Can (should) Social Re be a primary insurer instead of a resinsurer?
— Can re-insurance by Social Re be used to reduce capitalization requirements of the individual MIU?

Social Re is not designed as a direct insurer, but where regimes place onerous requirements that are beyond the means of the MIU, Social Re could have the capacity to shoulder those requirements. This should not change the business plan as Social Re would then develop mechanisms to distance itself from the community-based operations, which would remain in the hands of the MIU.
It is likely that even if Social Re licensed as a reinsurer (as it is originally planned) the regulatory framework will recognize the benefit of reinsurance and reduce the minimum capitalization requirements of the MIU.
On entering a specific country, Social Re will ensure that it considers the regulations in order to provide the greatest possible benefit to MIU.