Entire Section

  • PRU 3.5 PRU 3.5 PIN5 — Statement of Claims and Reinsurance and other Recoveries

    • Instructional Guidelines

      1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company.
      2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
      3. An Insurer must record claims paid and reinsurance and other recoveries in respect of claims paid relating to its Insurance Business on this form as follows:
      a. An Insurer that is carrying on General Insurance Business must complete part I of this form.
      b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form.
      c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 must record the General Insurance Business in a manner consistent with that adopted in respect of form 4 or determined in accordance with the instructional guidelines 3c under section 3.4.
      d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only.
      4. At items 1 to 8 and items 21 to 27, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record its gross claims paid for the reporting period in respect of that Class of Business and for that type of insurance contract.
      5. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
      6. At items 11 to 18 and items 30 to 36, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record the reinsurance and other recoveries receivable in respect of claims paid, in respect of each Class of Business and each type of insurance contract.
      7. Reinsurance recoveries must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and Classes of Business that have benefit of the reinsurance contracts.
      8. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its related parties as follows:
      a. At item 10, the amount of gross claims paid to Related parties that has been included in the total at item 9;
      b. At item 20, the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 19;
      c. At item 29, the amount of gross claims paid to Related parties that has been included in the total at item 28; and
      d. At item 38, the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 37.
      9. An Insurer required to complete part III must record at items 39 to 45, against each Class of Business, and for each type of claim as set out in columns 1 to 4, the Insurer’s gross claims paid for the reporting period in respect of that Class of Business and for that type of claim.
      10. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item 47 the amount of gross claims paid to Related parties that has been included in the total at item 46.
      11. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
      12. At items 48 to 54, against each Class of Business, and for each type of claim as set out in columns 1 to 4, an Insurer required to complete part III must record the reinsurance and other recoveries receivable in respect of claims paid, in respect of each Class of Business and each type of insurance contract.
      13. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item 56 the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 55.
      14. Column 5 in part III of the form must equal column 1 in part II of the form as follows:
      a column 5, items 39 to 45 must equal column 1, items 21 to 27 respectively;
      b column 5 item 47 must equal column 1 item 29;
      c column 5, items 48 to 54 must equal column 1, items 30 to 36 respectively; and
      d column 5 item 56 must equal column 1 item 38.
      15. Part III of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-Term Insurance Business. This part provides an analysis of the information provided in column 1 of part II.

      Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
      [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]