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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 A4.2.1

    Subject to PIN Rule A4.2.2, an Insurer must calculate its Minimum Capital Requirement according to the formula:

    MCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + LIRC + AMRC

    Where the following definitions apply:

    Term Definition
    MCR Insurer's Minimum Capital Requirement;
    DRC Insurer's default risk component;
    IVRC Insurer's investment volatility risk component;
    OARC Insurer's off-balance sheet asset risk component;
    OLRC Insurer's off-balance sheet liability risk component;
    CRC Insurer's concentration risk component;
    SFAC Insurer's size factor adjustment component;
    URC Insurer's underwriting risk component;
    RRC Insurer's reserving risk component;
    LIRC Insurer's Long-Term Insurance risk component; and
    AMRC Insurer's asset management risk component.

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