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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
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  • PIN 2.3 Management of particular risks

    • PIN 2.3.1

      An InsurerG must develop, implement and maintain a risk management system to identify and address balance sheet and market risk, including but not limited to:

      (a) reserving risk;
      (b) investment risk (including risks associated with the use of derivatives);
      (c) underwriting risk;
      (d) claims management risk;
      (e) product design and pricing risk; and
      (f) liquidity management risk.

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

    • PIN 2.3.2

      An InsurerG must develop, implement and maintain a risk management system to identify and address credit quality risk.


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

    • PIN 2.3.3

      An InsurerG must develop, implement and maintain a risk management system to identify and address the non-financial or operational risk of that InsurerG , including but not limited to:

      (a) technology risk (including processing risks);
      (b) reputational risk;
      (c) fraud and other fiduciary risks;
      (d) compliance risk;
      (e) outsourcing risk;
      (f) business continuity planning risk;
      (g) legal risk; and
      (h) key person risk.

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

    • PIN 2.3.4

      An InsurerG must develop, implement and maintain a risk management system to identify and address reinsurance risk. Reinsurance risk refers to risks associated with the Insurer'sG use of reinsurance arrangements as cedant.


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

    • PIN 2.3.5

      Without limiting the generality of PIN Rule 2.3.4, an Insurer'sG risk management system in respect of its use of reinsurance arrangements must include the development, implementation and maintenance of a written reinsurance management strategy, appropriate to the size and complexity of the operations of the InsurerG , defining and documenting the Insurer'sG objectives and strategy in respect of reinsurance arrangements.


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

    • PIN 2.3.6

      An InsurerG must develop, implement and maintain a risk management system which includes an explicit asset-liability management (ALM) policy, which must clearly specify the nature, role and extent of ALM activities and their relationship with product development, pricing functions and investment management.

      [Added] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]

      • PIN 2.3.6 Guidance

        1. An Insurer'sG ALM policy should be appropriate taking into account the nature, scale and complexity of its ALM risks.
        2. The ALM policy should include details as to how:
        (a) the investment and liability strategies adopted by the InsurerG allow for the interaction between assets and liabilities;
        (b) the correlations are taken into account;
        (c) the liability cash flows will be met by cash inflows; and
        (d) the valuations of assets and liabilities will change under an appropriate range of different scenarios.
        [Added] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]