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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Prudential — Insurance Business Module (PIN) [VER15/01-18]
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Jul 5 2007 - Aug 20 2014Aug 21 2014 onwards

PIN 3.6.1 Guidance



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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

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1. The features described in PIN Rule 3.6.1(1) have the potential to expose an Insurer to risks that are not adequately provided for in the capital adequacy framework set out in this RulebookG . The DFSAG retains the power to prohibit or limit the inclusion of such features in a Long-Term InsuranceG contract where it is of the view that the inclusion of such features may have a materially adverse impact upon the long term viability of the InsurerG . It is natural for InsurersG to seek to stimulate a market by offering features such as guarantees or options. However, the solvency of InsurersG could be threatened if they have not adequately valued, stress-tested and set aside adequate capital to service such features. Therefore, the DFSAG will expect InsurersG seeking permission to write contracts with such features to demonstrate that these steps have been undertaken, and that their procedures provide adequately for ongoing monitoring of the associated risks. Permission to undertake such business may be subject to conditions, for example, a requirement to maintain additional capital, or to restrict business of this nature by reference to total business. The DFSAG may also as a condition of granting permission require additional information relating to the business in question to be reported to the DFSAG in the Insurer'sG periodic regulatory returns, or in the Actuary'sG report referred to in PIN Rule 7.3.4.
2. If all the information required is provided to the DFSAG relating to a request for permission under PIN Rule 3.6.2, generally, it will take about 45 days for the DFSAG to be able to determine whether an InsurerG should be permitted to effect Direct Long-Term InsuranceG contracts with features of the kind referred to in that RuleG .
[Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
[Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]