This Code presents the general principles and minimum standards that should be met by insurance and reinsurance companies, including branches of foreign insurance and reinsurance companies, and insurance related service providers to manage their risks.

The objective of This Code is to promote high standards of risk management.

This Code must be read in conjunction with the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations, especially articles 12, 20, 21, 24, 37, 42, 46, 47, 49, 60, 61, 62, 68, 72, and 76.

The term “Companies” in This Code is intended to include: insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, reinsurance brokerages, and reinsurance agencies. The rest of the terms used in This Code shall have the same meaning as per article one (1) of the Implementing Regulations.

Risk management is defined1 as the process whereby the insurer's management takes action to assess and control the impact of past, present and potential future events that could be detrimental to the insurer. These events can impact both the asset and liability sides of the insurer's balance sheet, and the insurer’s cash flow.

This Code applies to insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, reinsurance brokerages, and reinsurance agencies.