PSO (Terrorism Type) Reinsurance Coverage

The Pakistan Reinsurance Company Limited (Ministry of Commerce) based in Karachi is procuring PSO (Terrorism Type) Reinsurance Coverage for the financial year 2025-26. This procurement involves securing comprehensive political violence insurance coverage including terrorism, sabotage, riots, strikes, civil commotion, mutiny, coup d'état, insurrection, revolution, rebellion, and war/civil war risks. The coverage is critical for Pakistan State Oil Company Limited (PSO), the largest oil marketing company in Pakistan, covering assets, stocks, and business interruption risks across multiple locations nationwide. The technical scope includes coverage for assets at replacement and acquisition cost, stocks of refined petroleum products, and business interruption indemnity for six months. The sum insured totals over USD 1.14 billion, with detailed risk and asset descriptions provided. The policy must include debris removal, consultant fees, automatic additions clause, price escalation for stocks, and claims settlement within 60 days. The lead reinsurer must hold a minimum A rating with a 15-25% share, and the remaining risk placed with similarly rated securities. Eligible bidders must be international (re)insurance brokers with an annual premium placement volume of at least USD 500 million. Local affiliates must be registered with SECP, NTN, and on the active taxpayers list. Bidders must submit firm quotes valid for at least 45 days, accompanied by a bid security and comply with all terms including premium payment warranty of 90 days. The procurement follows a Single Stage-Two Envelope procedure with bids submitted electronically via EPADS v2.0 by June 15, 2026, 11:00 AM. Bidders should ensure complete and compliant submissions including signed policy wordings, premium calculations, and confirmation of lead reinsurer details. The bid opening will be conducted online on the same day at 11:30 AM. Manual submissions are not accepted. A practical tip for bidders is to register early on EPADS v2.0 and carefully follow the detailed instructions to avoid disqualification. The submission address for original bid security is PRC-Towers, 32-A, Lalazar Drive, M.T Khan Road, Karachi. This tender offers a significant opportunity for qualified brokers to engage with a major government entity in a high-value reinsurance contract.