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Dubai Financial Services Authority (DFSA): Contents

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  Versions
(1 version)
 
Jul 5 2007 onwards

PIN A4.12.8



Whole Section PDF

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.

To view past versions of this module in PDF format, please visit the Archive.

An InsurerG who carries on Direct Long-Term Insurance BusinessG through a branch located outside the DIFCG must calculate the Direct Long-Term Insurance BusinessG element of its Long-Term InsuranceG risk component as the aggregate of the following, in respect of those contracts:

(a) the following proportions of provisions in respect of Long-Term Insurance BusinessG :
(i) in the case of Class I, Class II, and Class VI, 4%;
(ii) in the case of Class III and Class VII, where the InsurerG bears investment risk, 4%; and
(iii) in the case of Class III, where the InsurerG bears no investment risk but the allocation to cover management expenses is fixed for more than five years, 1%;
(b) in the case of all contracts where the InsurerG bears a death risk under the contract, the following percentage of capital at risk, subject to a maximum reduction for reinsurance of 50%:
(i) where the contract is term assurance of not more than three years, 0.1%;
(ii) where the contract is term assurance of between three and five years, 0.15%; and
(iii) in all other cases, 0.3%;
(c) in the case of Class III, where the InsurerG bears no investment risk and the allocation to cover management expenses is not fixed for more than five years, 25% of the Insurer'sG net administrative expenses in the past financial year pertaining to such business;
(d) in the case of Class IV, the higher of:
(i) 18% of Gross Written PremiumG , reducing to 16% for the amount of Gross Written PremiumG in excess of $50 million, and subject to a maximum reduction for reinsurance of 50%; and
(ii) 26% of the average gross claims incurred over the three preceding financial years, reducing to 23% for the amount of that average in excess of $35 million, and subject to a maximum reduction for reinsurance of 50%; and
(e) in the case of Class V, 1% of the assets of the tontine;
[Added] RM46/2007 (Made 5th July 2007) [VER6/07-07]