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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 9.3 Run-off plans

    • PIN 9.3.1

      This section applies to:

      (a) InsurersG that are in run-off or that maintain CellsG or Long-Term Insurance FundsG that are in run-off;
      (b) InsurersG that go into run-off or that place CellsG or Long-Term Insurance FundsG into run-off;
      (c) InsurersG that make a decision to go into run-off or to place a CellG or Long-Term Insurance FundG into run-off; and
      (d) InsurersG whose permission to effect Contracts of InsuranceG in respect of their entire Insurance BusinessG or in respect of the entire business of a CellG or Long-Term Insurance FundG is withdrawn by the DFSAG .

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

    • PIN 9.3.2

      If an InsurerG takes a decision to go into run-off or to place a CellG or a Long-Term Insurance FundG into run-off, the InsurerG must, at the same time as the notice referred to in PIN Rule 9.2.2, provide the DFSAG with a written run-off plan in respect of the Insurance BusinessG being placed into run-off.


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

    • PIN 9.3.3

      If the DFSAG withdraws an Insurer'sG permission to effect Contracts of InsuranceG in respect of the Insurer'sG entire Insurance BusinessG or the entire Insurance BusinessG of a CellG or Long-Term Insurance FundG , the InsurerG must, within 28 days of the written notice of withdrawal of permission (or, if later, the period specified in that notice), provide the DFSAG with a written run-off plan in respect of that Insurance BusinessG .


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

    • PIN 9.3.4

      A run-off plan provided to the DFSAG in accordance with this section must cover the period until all liabilities to policyholders relating to the Insurance BusinessG in run-off are met and must include:

      (a) an explanation of how, or to what extent, all liabilities to policyholders will be met in full as they fall due;
      (b) an explanation of how, or to what extent, the InsurerG will maintain its compliance with the requirements of PIN chapter 4 until such time as all liabilities to policyholders are met;
      (c) a description, appropriate to the scale and complexity of the Insurer'sG business, of the Insurer'sG business strategy;
      (d) financial projections showing, in a form appropriate to the scale and complexity of the Insurer'sG operations, the forecast financial position of the InsurerG as at the end of each reporting period during the period to which the run-off plan relates; and
      (e) an assessment of the sensitivity of the financial position of the InsurerG to stress arising from realistic scenarios relevant to the circumstances of the InsurerG .

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

    • PIN 9.3.5

      Where an Insurer'sG Insurance BusinessG in run-off relates to a CellG or a Long-Term Insurance FundG of that InsurerG , the run-off plan must deal with the matters set out in PIN Rule 9.3.4 so far as they relate to that CellG or Long-Term Insurance FundG .


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

    • PIN 9.3.6

      An InsurerG that has provided a written run-off plan to the DFSAG must monitor the matters contained in the run-off plan and must notify the DFSAG promptly and in writing of any significant departure from the run-off plan.

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

      • PIN 9.3.6 Guidance

        An InsurerG should decide whether a matter constitutes a significant departure from a run-off plan, having regard to the nature and size of the matter and its materiality relative to the size and complexity of the InsurerG and, where relevant, the size and complexity of the CellG or Long-Term Insurance FundG concerned. The following matters will normally be considered as representing a significant departure from a run-off plan:

        a. significant revision of the Insurer'sG strategy for managing risks, and in particular its strategy for the use of reinsurance;
        b. a significant deterioration in the Insurer'sG claims experience, financial position or solvency position (the amount by which the Insurer'sG capital resources, determined in accordance with the provisions of PIN chapter 4 relevant to that InsurerG , exceed the applicable minimum capital requirements set out in that chapter); or
        c. any other transaction or circumstance that is likely to have a material effect upon the Insurer'sG solvency position.

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

    • PIN 9.3.7

      Where an InsurerG has notified a matter to the DFSAG in accordance with PIN Rule 9.3.6, the DFSAG may by notice in writing require the InsurerG to provide an amended run-off plan. The InsurerG must provide an amended run-off plan within 28 days of receipt of the notice, unless the notice specifies a longer period.


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