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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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PIN A4.12 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 Long-Term InsuranceG risk component of the Minimum Capital RequirementG is to require an InsurerG to set aside capital to address the risk that the net present value of future Policy BenefitsG will vary from the amounts recorded as Long-Term Insurance LiabilitiesG in the Insurer'sG balance sheet.
2. The calculation model set out in PIN Rule A4.12.1 deals separately with Direct Long-Term Insurance BusinessG , with proportional and non-proportional reinsurance of Long-Term Insurance BusinessG , and with finite risk reinsurance of Long-Term Insurance BusinessG .
3. To determine the amount for proportional reinsurance business, the calculation model applies ratios to the Insurer'sG premium, to its liability and to the capital at risk in respect of such business. To determine the amount for non-proportional reinsurance, a ratio is applied to the Insurer'sG non-proportional reinsurance premium. To determine the amount for finite risk reinsurance, ratios are applied to the balance outstanding on contracts, depending on the rating of the InsurerG and the term to completion. To determine the amount for Direct Long-Term Insurance BusinessG , the calculation model applies ratios to the Insurer'G s liability and to its capital at risk in respect of such business. Additional or alternative charges are made in respect of particular Classes of BusinessG .

Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] RM46/2007 (Made 5th July 2007) [VER6/07-07]
[Amended] DFSA RM56/2008 (Made 1st July 2008). [VER10/07-08]