PIN 2.5 PIN 2.5 Insurers that undertake surety insurance business
This section applies only to
Insurersthat undertake Insurance Businessin Class 7(b).
Insurerthat undertakes Insurance Businessin Class 7(b) must ensure that:(a) in any reporting period, the amount of its Gross Written Premiumattributable to Class 7(b) does not exceed 5% of its total Gross Written Premiumin all classes of non-life insurance;(b) the Personinsured under any Contract of Insurancein 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 Insurancein 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 Insurancein Class 7(b) does not exceed twenty years.
Insurerthat is a Protected Cell Companythat undertakes Insurance Businessin Class 7(b) must comply with PIN Rule 2.5.2 in respect of each Cellto which such business is attributable.
PIN 2.5.5 PIN 2.5.5(1) An
Insurerintending to undertake Insurance Businessin Class 7(b) must:(a) notify the DFSAin writing of its proposal to undertake such business; and(b) give to the DFSAa business plan for the business intended to be undertaken.(2) The DFSAmay object to a proposal made by an Insurerunder (1).(3) The procedures in Schedule 3 to the Regulatory Lawapply to a decision of the DFSAunder (2).(4) If the DFSAdecides to exercise its power under (2), the Insurer may refer the matter to the FMTfor review.(5) An Insurermust not effect any contract of insurance in Class 7(b) if the DFSAhas objected to a proposal it has made under (1).
PIN 2.5.5 Guidance1. If all the information required is provided to the
DFSArelating to the proposal to effect Contracts of Insurancein Class 7(b), generally, it will take about 45 days for the DFSAto be able to determine whether an Insurershould be allowed to conduct this type of business. An Insurermay commence a reference to the FMTin relation to a decision of the DFSAto 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 Insurerwishes to operate in the DIFC, the DFSAwill consider what requirements should apply to it. In doing so, the DFSAwill consider capital adequacy and other requirements that are generally applied to such specialist Insurersin other jurisdictions.