Entire Section

  • PIN 3.6.2 PIN 3.6.2

    A DIFC Incorporated Insurer which undertakes Direct Long-Term Insurance Business must supervise adequately the conduct of its Direct Long-Term Insurance Business in each jurisdiction in which that business is undertaken.

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

    • PIN 3.6.2 Guidance

      1. In order to demonstrate compliance with PIN Rule 3.6.2, the senior management of a DIFC Incorporated Insurer should have mechanisms in place such that adequate information, in appropriate detail, is reported internally to senior management on a timely basis, and that this information is appropriately considered and acted upon.
      2. In discharging its responsibilities under PIN Rule 3.6.2, and under the high level requirements to which it is subject under GEN Rule 5.3.1, senior management will need to consider specific risks to which the Insurer is exposed as a consequence of its activity within each jurisdiction. Internal governance procedures such as Internal Audit should include examination of non-DIFC activities. Compliance procedures should be designed to ensure that the Insurer complies with any domestic regulation to which it may be subject in the jurisdiction in which it is doing business. Insurers are also expected to ensure that conduct of business by them in other jurisdictions does not pose any risk to the reputation of the DIFC. Consequently, senior management should ensure that adequate standards of customer protection are adopted by the Insurer's operation in each jurisdiction. Senior management should have regard to the provisions of GEN section 4.2 and in particular Principles 6, 7, 8 and 9 in considering whether standards of consumer protection are adequate. Review of persistency statistics may assist in identifying problems in the area of conduct of business.
      3. PIN Rule 3.6.2 does not preclude the establishment of appropriate local management structures with responsibility for the Insurer's business in the jurisdiction in question. However, the overall responsibility for ensuring compliance with domestic and DIFC regimes rests with the senior management of the Insurer.
      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]