Entire Section

  • PIN 2.5 PIN 2.5 Insurers that undertake surety insurance business

    • PIN 2.5.1

      This section applies only to Insurers that undertake Insurance Business in Class 7(b).

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIB 2.5.2

      An Insurer that undertakes Insurance Business in Class 7(b) must ensure that:

      (a) in any reporting period, the amount of its Gross Written Premium attributable to Class 7(b) does not exceed 5% of its total Gross Written Premium in all classes of non-life insurance;
      (b) the Person insured under any Contract of Insurance in Class 7(b) is:
      (i) a Body Corporate; or
      (ii) if not a Body Corporate, a Financial Institution;
      (c) at the time of effecting a Contract of Insurance in Class 7(b), the Person insured under that contract has a rating of BBB or better; and
      (d) the maximum period of any Contract of Insurance in Class 7(b) does not exceed twenty years.
      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.3

      PIN Rule 4.1.4 applies in respect of determination of ratings for the purposes of PIN Rule 2.5.2(c).

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.4

      An Insurer that is a Protected Cell Company that undertakes Insurance Business in Class 7(b) must comply with PIN Rule 2.5.2 in respect of each Cell to which such business is attributable.

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.5 PIN 2.5.5

      (1) An Insurer intending to undertake Insurance Business in Class 7(b) must:
      (a) notify the DFSA in writing of its proposal to undertake such business; and
      (b) give to the DFSA a business plan for the business intended to be undertaken.
      (2) The DFSA may object to a proposal made by an Insurer under (1).
      (3) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSA under (2).
      (4) If the DFSA decides to exercise its power under (2), the Insurer may refer the matter to the FMT for review.
      (5) An Insurer must not effect any contract of insurance in Class 7(b) if the DFSA has objected to a proposal it has made under (1).
      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
      [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN 2.5.5 Guidance

        1. If all the information required is provided to the DFSA relating to the proposal to effect Contracts of Insurance in Class 7(b), generally, it will take about 45 days for the DFSA to be able to determine whether an Insurer should be allowed to conduct this type of business. An Insurer may commence a reference to the FMT in relation to a decision of the DFSA to object to a proposal.
        2. The current requirements relating to Class 7(b) do not cater to monoline specialist financial guarantee insurers. However, if such an Insurer wishes to operate in the DIFC, the DFSA will consider what requirements should apply to it. In doing so, the DFSA will consider capital adequacy and other requirements that are generally applied to such specialist Insurers in other jurisdictions.
        [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]