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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) Insurers that are in run-off or that maintain Cells or Long-Term Insurance Funds that are in run-off;
      (b) Insurers that go into run-off or that place Cells or Long-Term Insurance Funds into run-off;
      (c) Insurers that make a decision to go into run-off or to place a Cell or Long-Term Insurance Fund into run-off; and
      (d) Insurers whose permission to effect Contracts of Insurance in respect of their entire Insurance Business or in respect of the entire business of a Cell or Long-Term Insurance Fund is withdrawn by the DFSA.

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

    • PIN 9.3.2

      If an Insurer takes a decision to go into run-off or to place a Cell or a Long-Term Insurance Fund into run-off, the Insurer must, at the same time as the notice referred to in PIN Rule 9.2.2, provide the DFSA with a written run-off plan in respect of the Insurance Business being placed into run-off.


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

    • PIN 9.3.3

      If the DFSA withdraws an Insurer's permission to effect Contracts of Insurance in respect of the Insurer's entire Insurance Business or the entire Insurance Business of a Cell or Long-Term Insurance Fund, the Insurer must, within 28 days of the written notice of withdrawal of permission (or, if later, the period specified in that notice), provide the DFSA with a written run-off plan in respect of that Insurance Business.


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

    • PIN 9.3.4

      A run-off plan provided to the DFSA in accordance with this section must cover the period until all liabilities to policyholders relating to the Insurance Business 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 Insurer 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's business, of the Insurer's business strategy;
      (d) financial projections showing, in a form appropriate to the scale and complexity of the Insurer's operations, the forecast financial position of the Insurer 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 Insurer to stress arising from realistic scenarios relevant to the circumstances of the Insurer.

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

    • PIN 9.3.5

      Where an Insurer's Insurance Business in run-off relates to a Cell or a Long-Term Insurance Fund of that Insurer, the run-off plan must deal with the matters set out in PIN Rule 9.3.4 so far as they relate to that Cell or Long-Term Insurance Fund.


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

    • PIN 9.3.6

      An Insurer that has provided a written run-off plan to the DFSA must monitor the matters contained in the run-off plan and must notify the DFSA 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 Insurer 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 Insurer and, where relevant, the size and complexity of the Cell or Long-Term Insurance Fund concerned. The following matters will normally be considered as representing a significant departure from a run-off plan:

        a. significant revision of the Insurer's strategy for managing risks, and in particular its strategy for the use of reinsurance;
        b. a significant deterioration in the Insurer's claims experience, financial position or solvency position (the amount by which the Insurer's capital resources, determined in accordance with the provisions of PIN chapter 4 relevant to that Insurer, 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's solvency position.

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

    • PIN 9.3.7

      Where an Insurer has notified a matter to the DFSA in accordance with PIN Rule 9.3.6, the DFSA may by notice in writing require the Insurer to provide an amended run-off plan. The Insurer 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]