AGREEMENT ESTABLISHING THE ASIAN REINSURANCE CORPORATION
PREAMBLE AND DECISION
The undersigned developing regional countries, members and associate members of the United Nations Economic and Social Commission for Asia and
the Pacific:
Recognizing the important role of insurance in the development of their national economies, bota as provider of economic security and as generator of investible funds;
Aware of the fact that their national insurance markets, in order to meet the rapidly growing need for insurance cover generated in their countries, make extensive use of foreign reinsurance services;
Conscious that the heavy outflow of insurance business in the form of outward reinsurance covers results in a serious expenditure of foreign exchange for each Asian and Pacific country concerned and for Asia and the Pacific es a whole;
Desirous to utilize the regional acceptance capacity to the maximum and to foster the retention in Asia and the Pacific of a large part of re- insurance bus less which at present lows outside the region to the inter- national reinsurance centres;
Taking note of the resolutions 42/111(1972) and 7/IV(1973) of the United Nations Conference on Trade and Development (UNCTAD), inviting, inter alia, the developing countries to increase regional co-operation in the field or reinsurance;
Erving considere the various forms of reinsurance co-operation, such as intercompany arrangements, concerns and pools, as well as inter- governmental institutions,
Decide hereby to establish an intergovernmental regional Asian Reinsurance Corporation which shall be governed by the provisions of the present Agreement and its Protocols and shall perform the following functions: