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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 2.2 Risk management

    • PIN 2.2.1

      An Insurer'sG risk management systems must:

      (a) be appropriate to the size, business mix and complexity of the Insurer'sG operations;
      (b) address all material risks, financial and non-financial, to which the InsurerG is likely to be exposed;
      (c) describe the relationships between the Insurer'sG risk tolerance limits, its capital requirements, economic capital and the processes and methods for monitoring risk; and
      (d) be supported by adequate risk management policies and procedures which explain the risks covered, the measurement approaches used, and the key assumptions made.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]

    • PIN 2.2.2

      The risk management systems maintained by an InsurerG must include:

      (a) a written risk management strategy approved by senior management, which in the opinion of senior management addresses all material risks to which the InsurerG is likely to be exposed;
      (b) risk management policies and procedures that in the opinion of senior management are adequate to identify, assess, mitigate, control, monitor and report on the material risks to which the InsurerG is exposed; and
      (c) clearly identified managerial responsibilities and controls, designed to ensure that the policies and procedures established for risk management are adhered to at all times.

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

    • PIN 2.2.3

      Subject to PIN Rule 2.2.4, where an InsurerG is a member of a GroupG , the InsurerG must take reasonable actions to ensure that the GroupG as a whole complies with the requirements of PIN Rule 2.2.1 and PIN Rule 2.2.2 as though the GroupG as a whole were an InsurerG .


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

    • PIN 2.2.4

      PIN Rule 2.2.3 does not apply in respect of a GroupG where the InsurerG is not the Holding CompanyG and where the Holding CompanyG of the GroupG is:

      (a) another InsurerG ; or
      (b) a SubsidiaryG of another Holding CompanyG .
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

      • PIN 2.2.4 Guidance

        1. The effect of PIN Rule 2.2.4 is to avoid duplication arising from complex GroupG structures. If an InsurerG is a member of a GroupG whose Holding CompanyG is another InsurerG , the first InsurerG need not apply PIN Rule 2.2.3 in respect of that GroupG , because the InsurerG that is the Holding CompanyG is already required to apply that RuleG . Where an InsurerG is a member of two or more GroupsG that are also sub-groups of a single GroupG , the InsurerG may consider that single group as a whole for the purposes of this section. An InsurerG that is a Holding CompanyG is however still required to apply PIN Rule 2.2.3 in respect of any GroupG of which the InsurerG is the Holding CompanyG .
        2. An InsurerG should describe how its risk tolerance limits described in PIN Rule 2.2.1(c) link with its corporate objectives, business strategy and current circumstances. An InsurerG is expected to embed its risk tolerance limits into its day-to-day operations and its risk management policies and procedures.
        Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]