Reinsurance Coverage for Directors and Officers Liability

The Pakistan Reinsurance Company Limited (PAKRE) under the Ministry of Commerce, Karachi, Sindh, is procuring reinsurance coverage specifically for Directors and Officers Liability. This tender is identified as 138(PRCL-RETRO-OGDCL-D&O)/2026 and invites bids from international (re)insurance brokers with an annual premium placement volume of at least USD 500 million. The scope includes provision of reinsurance coverage for one year from July 1, 2026, to June 30, 2027, with options for discounts on subsequent years if renewed with the same bidder. The successful bidder will be responsible for arranging reinsurance placements with lead reinsurers holding a minimum A rating and a lead share between 15% and 25%, with the remaining risk placed with securities rated at least A-. Managing General Agencies and Underwriting Agencies may support up to 20% of the risk but cannot act as leaders. The broker must submit a firm financial quote including all discounts and commissions, with a premium payment warranty of 90 days from policy inception. Bids must be submitted online via EPADS v2.0 by June 1, 2026, 11:00 AM, with bid opening at 11:30 AM the same day. Technical bids must include a signed compliance matrix on the foreign broker's letterhead and premium calculations. The tender emphasizes strict compliance with terms, including no direct communication with clients without PRCL in the loop, and reserves the right to cancel or reject bids. Bidders should ensure timely placement within 15 days of order issuance and maintain professional indemnity policies. A practical tip for bidders is to carefully prepare the bid with all required documentation, including leader confirmation and risk-wise premium breakup, to avoid disqualification. Submission of bids requires earnest money in the form of bid security, and all communications must be through authorized representatives. The contract will be governed by Pakistani law with arbitration in Islamabad if disputes arise. This tender offers a significant opportunity for qualified brokers to engage with a reputable government entity and requires attention to detail in bid preparation and compliance with all regulatory and procedural requirements.