Entire Section

  • COB 7.2 COB 7.2 Insurance Business, Management and Intermediation Restrictions

    • COB 7.2.1

      An Authorised Firm may only conduct Insurance Business or Insurance Intermediation with or for a Client to the extent specified in this section.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.2.2 COB 7.2.2

      (1) An Insurer must ensure that it does not Effect a Contract of Insurance or Carry Out a Contract of Insurance through an establishment maintained by it in the DIFC where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or another Financial Free Zone, or the contract is one of re-insurance.
      (2) An Insurance Intermediary must ensure that it does not act as agent in relation to a Contract of Insurance where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or another Financial Free Zone, or the contract is one of re-insurance.
      (3) An Insurance Manager must ensure that it does not act in relation to a Contract of Insurance where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or 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 Insurance that is not a contract of re-insurance.

        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]

    • COB 7.2.3

      An Insurer must ensure that it does not carry on, through an establishment maintained by it in the DIFC, both Long-Term Insurance Business and General Insurance Business unless the General Insurance Business is restricted to Class 1 or Class 2 or both.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.2.4

      An Insurer which is a Protected Cell Company must ensure that all Insurance Business is attributable to a particular Cell of that Insurer.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.2.5 COB 7.2.5

      An Insurer must not carry on any activity other than Insurance Business unless it is an activity in direct connection with or for the purposes of such business. For the purposes of this Rule, Managing Assets is not an activity in connection with or for the purposes of Insurance Business.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.2.5 Guidance

        1. The following activities will normally be considered in direct connection with or for the purposes of Insurance Business carried on by an Insurer:
        a. investing, reinvesting or trading, as investor or rabb ul maal and for the Insurer's own account, that of its Subsidiary, its Holding Company or any Subsidiary of its Holding Company but 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 Business operations 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 Subsidiaries or Associates engaged or organised to engage exclusively in one or more of the businesses specified above; and
        e. 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.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.2.6 COB 7.2.6

      An Insurance Manager must not underwrite on behalf of a Non-DIFC insurer in relation to a Contract of Insurance with or for a Retail Client, unless the Insurance Manager has obtained the prior written approval of the DFSA in 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 Manager should submit to the DFSA sufficient information to establish that the Non-DIFC insurer for 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]