GEN 2.20.1 GEN 2.20.1(1) In GEN Rule 2.2.2,
Insurance Managementmeans:(a) performing underwriting or administration functions for or on behalf of an insurer, for the purposes of that insurer effecting or carrying out a Contract of Insuranceas principal;(b) advising on a Contract of Insurancefor which the Person performs, or is proposing to perform, underwriting functions referred to in (a); or(c) arranging reinsurance for and on behalf of an insurer for whom it is underwriting.(2) In (1):(a) "administration" includes, without limitation, one or more of the following activities:(i) processing applications for, and endorsements on, Contracts of Insurance;(ii) collecting and processing premiums;(iii) negotiating terms of settlement of claims; or(iv) settling claims;(b) "advising" has the same meaning as in GEN Rule 2.19.1(2) and (3); and(c) "underwriting" includes, without limitation, one or more of the following activities:(i) assessing underwriting risks;(ii) negotiating and settling terms of Contracts of Insuranceincluding exclusions;(iii) negotiating and settling premiums;(iv) negotiating commissions; or(v) countersigning, stamping and issuing Contracts of Insurance.(3) In this Rule, a reference to an "insurer" is a reference to:(a) an Insurer; or(b) a Non-DIFC insurer.
GEN 2.20.1 Guidance1. As a
Contract of Insuranceis defined in GEN App4 to include a contract of reinsurance, Insurance Managementincludes functions performed for or on behalf of a reinsurer. A Personmay carry on Insurance Managementfor or on behalf of a domestic (i.e. DIFC) Insureror a Non-DIFC insurer(i.e. an insurer located and regulated outside the DIFC). A Personmay also do so for a single insurer or a number of insurers.2. An Insurance Managercan under GEN Rule 2.20.1(1)(b) advise on Contracts of Insurancefor which it performs, or proposes to perform, underwriting functions. This includes advising sponsors and members of captive cells it manages or proposes to manage.3. An Insurance Manageradvising on contracts of insurance which it underwrites or proposes to underwrite is not generally expected to act also as an Insurance Broker, i.e. as agent of a Policyholder, because this would cause conflicts of interest that are difficult to manage. See the Guidance under COB Rule 7.9.1.
Derived from DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]