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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 A8.9 Size factor component

    • PIN A8.9 Guidance

      The effect of the size factor component is to provide a relatively higher capital requirement in respect of Long-Term Insurance FundsG with smaller portfolios of Invested AssetsG . The provisions in this section apply the relevant provisions of PIN section A4.9 to each Long-Term Insurance FundG that an InsurerG maintains.


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

    • PIN A8.9.1

      The base figure for the size factor component is determined by aggregating the following components, for the Long-Term Insurance FundG :

      (a) the aggregate of the default components determined in accordance with PIN section A8.4, in respect of Invested AssetsG ;
      (b) the investment volatility risk component determined in accordance with PIN section A8.5; and
      (c) the concentration risk component determined in accordance with PIN section A8.8.

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

    • PIN A8.9.2

      An InsurerG must calculate the size factor component in respect of Long-Term Insurance FundG by multiplying the base figure for that fund as determined in accordance with PIN Rule A8.9.1 by the factor derived by applying the following formula, where x represents the total Invested AssetsG attributable to that fund, expressed in millions of dollars:

      (a) if x ≤ 100, the factor is 1.5;
      (b) if 100 < x ≤ 200, the factor is (150 + 0.5(x–100))/x;
      (c) if 200 < x ≤ 1,200, the factor is (200 – 0.2(x–200))/x; and
      (d) if x > 1,200, the factor is zero.

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