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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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PIN A4.7 Guidance

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.

1. The purpose of the off-balance sheet liability risk component is to require an InsurerG to set aside capital to cover the risk that it will be required to perform on a guarantee, letter of credit or other credit substitute that it has entered into. Although such items are not liabilities of the InsurerG as at the Solvency Reference DateG , they have the capacity to crystallise as liabilities at a subsequent date and therefore to affect the Insurer'sG capital position.
2. Credit substitutes that are Contracts of InsuranceG are excluded from the calculation of this component, as they are subject to a separate capital requirement under PIN section 4.5.

Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]