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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 A4.10 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.

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

The purpose of the underwriting risk component of the Minimum Capital RequirementG is to require an InsurerG to set aside capital to address the risk that the cost of claims in respect of General Insurance BusinessG will vary from the cost implicit in the premiums being charged. The basic calculation model set out in PIN Rule A4.10.2 applies different factors to the premium in respect of different Classes of BusinessG , based on the different perceived risk of variability associated with each. The model is modified by additional provisions dealing with certain Classes of BusinessG . This section also restricts the extent to which reinsurance may be taken into account when calculating the underwriting risk component.

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