COB 7.2 COB 7.2 Insurance Business, Management and Intermediation Restrictions
Authorised Firmmay only conduct Insurance Businessor Insurance Intermediationwith or for a Clientto the extent specified in this section.
COB 7.2.2 COB 7.2.2(1) An
Insurermust ensure that it does not Effecta Contract of Insuranceor Carry Outa Contract of Insurancethrough an establishment maintained by it in the DIFCwhere the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFCor another Financial Free Zone , or the contract is one of re-insurance.(2) An Insurance Intermediarymust ensure that it does not act as agent in relation to a Contract of Insurancewhere the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFCor another Financial Free Zone , or the contract is one of re-insurance.(3) An Insurance Managermust ensure that it does not act in relation to a Contract of Insurancewhere the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFCor another Financial Free Zone , or the contract is one of re-insurance.[Amended] DFSA RM61/2008 (Made 4th January 2009) [VER15/01-09]
Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
[Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]
[Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]
[Added] DFSA RMI289/2020 (Made 16th December 2020). [VER37/02-21]
COB 7.2.2 Guidance
The classes of insurance are set out in GEN App4. These include both insurance and reinsurance contracts relating to life insurance and non-life insurance (such as accident, sickness, property and travel insurance). However, the prohibitions in COB Rule 7.2.2 only apply to a
Contract of Insurancethat is not a contract of re-insurance.
Insurermust ensure that it does not carry on, through an establishment maintained by it in the DIFC, both Long-Term Insurance Businessand General Insurance Businessunless the General Insurance Businessis restricted to Class 1or Class 2or both.
Insurerwhich is a Protected Cell Companymust ensure that all Insurance Businessis attributable to a particular Cellof that Insurer.
COB 7.2.5 COB 7.2.5
Insurermust not carry on any activity other than Insurance Businessunless it is an activity in direct connection with or for the purposes of such business. For the purposes of this Rule, Managing Assetsis not an activity in connection with or for the purposes of Insurance Business.
COB 7.2.5 Guidance1. The following activities will normally be considered in direct connection with or for the purposes of
Insurance Businesscarried on by an Insurer:a. investing, reinvesting or trading, as investor or rabb ul maal and for the Insurer'sown account, that of its Subsidiary, its Holding Companyor any Subsidiaryof its Holding Companybut not any other party, in Securities, loans, investment accounts, units or shares in collective investment funds, certificates of mudaraba, certificates of musharaka or other forms of investments that are intended to earn profit or return for the investor;b. rendering other services related to Insurance Businessoperations including, but not limited to, actuarial, risk assessment, loss prevention, safety engineering, data processing, accounting, claims handling, loss assessment, appraisal and collection services;c. acting as agent for another insurer in respect of contracts of insurance in which both insurers participate;d. establishing Subsidiariesor Associatesengaged or organised to engage exclusively in one or more of the businesses specified above; ande. giving advice relating to its own Contracts of Insurance.2. The DFSA may give individual guidance on other business activities that may be determined to be in direct connection with Insurance Business.
COB 7.2.6 COB 7.2.6
Insurance Managermust not underwrite on behalf of a Non-DIFC insurerin relation to a Contract of Insurancewith or for a Retail Client, unless the Insurance Managerhas obtained the prior written approval of the DFSAin respect of that insurer.Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]
COB 7.2.6 Guidance
For the purposes of COB Rule 7.2.6, an
Insurance Managershould submit to the DFSAsufficient information to establish that the Non-DIFC insurerfor which it proposes to act is fit and proper and is subject to adequate regulation in its home jurisdiction.Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]