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  • PIN 2.3.6 PIN 2.3.6

    An Insurer must develop, implement and maintain a risk management system which includes an explicit asset-liability management (ALM) policy, which must clearly specify the nature, role and extent of ALM activities and their relationship with product development, pricing functions and investment management.

    [Added] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]

    • PIN 2.3.6 Guidance

      1. An Insurer's ALM policy should be appropriate taking into account the nature, scale and complexity of its ALM risks.
      2. The ALM policy should include details as to how:
      (a) the investment and liability strategies adopted by the Insurer allow for the interaction between assets and liabilities;
      (b) the correlations are taken into account;
      (c) the liability cash flows will be met by cash inflows; and
      (d) the valuations of assets and liabilities will change under an appropriate range of different scenarios.
      [Added] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]