The document highlights the most critical aspects in the reinsurance supervision that the Royal Monetary Authority of Bhutan (RMA) should consider. The document considers the existing and near-term expected reinsurance activity in Bhutan. An introductory section explains the basics of reinsurance providing a useful overview of what corresponds to normal use of reinsurance and what raises supervisory red flags. The next section guides the supervisor to identify when reinsurance should be closely looked into and on what the reinsurance supervision and regulation needs to focus on. The document concludes with the sections of best practice and on the general procedures on the reinsurance supervision. Annexes presents details of the common forms of reinsurance contracts, a detailed form on the reporting of reinsurance treaties, and a glossary of terms.