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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 App9 Calculation of DIFC Business Risk Capital Requirement

    • PIN A9.1 Purpose and general provisions

      • PIN A9.1.1

        This appendix applies to all InsurersG to which PIN section 4.7 applies.

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

        • PIN A9.1.1 Guidance

          1. This appendix sets out the manner in which an InsurerG that is not a DIFC Incorporated InsurerG is required to calculate its DIFC Business Risk Capital RequirementG . The basis of calculation is analogous to the basis of calculation of elements of the Minimum Capital RequirementG for InsurersG that are not Protected Cell CompaniesG , as set out in PIN App4.
          2. The DIFC Business Risk Capital RequirementG is calculated with reference to the insurance activities of the InsurerG , carried out through its establishment in the DIFCG , without deduction for reinsurances.

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

    • PIN A9.2 DIFC business risk capital requirement

      • PIN A9.2.1

        An InsurerG must calculate its DIFC Business Risk Capital RequirementG as the sum of the Insurer'sG DIFCG underwriting risk component, the Insurer'sG DIFCG reserving risk component and the Insurer'sG DIFCG Long-Term InsuranceG risk component.


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

      • PIN A9.2.2

        In calculating the DIFC Business Risk Capital RequirementG :

        (a) no account must be taken of Contracts of InsuranceG effected by the InsurerG , other than through an establishment in the DIFCG ; and
        (b) no account must be taken of contracts of reinsurance entered into by the InsurerG as cedant, regardless of where those contracts of reinsurance were entered into.

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

    • PIN A9.3 DIFC underwriting risk component

      • PIN A9.3 Guidance

        The DIFCG underwriting risk component requires an InsurerG to demonstrate the availability of capital to address the risk that the cost of claims on Contracts of InsuranceG entered into as InsurerG through an establishment in the DIFCG will vary from the cost implicit in the premiums being charged.


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

      • PIN A9.3.1

        An InsurerG must calculate its DIFCG underwriting risk component according to the method set out in PIN section A4.10, subject to the modifications set out in Rules PIN A9.2.2(a) and (b).


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

    • PIN A9.4 DIFC reserving risk component

      • PIN A9.4 Guidance

        The DIFCG reserving risk component requires an InsurerG to demonstrate the availability of capital to address the risk that the cost of claims in respect of contracts entered into as InsurerG through an establishment in the DIFCG will vary from the amounts recorded as liabilities in the Insurer'sG balance sheet.


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

      • PIN A9.4.1

        An InsurerG must calculate its DIFCG Long-Term InsuranceG risk component according to the method set out in PIN section A4.12, subject to the modifications set out in Rules PIN 9.2.2(a) and (b).


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

    • PIN A9.5 DIFC long-term insurance risk component

      • PIN A9.5.1

        An InsurerG must calculate its DIFCG Long-Term InsuranceG risk component according to the method set out in PIN section A4.12, subject to the modifications set out in Rules PIN 9.2.2(a) and (b).


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