PIN 4.2.4 PIN 4.2.4
Systems and controls maintained by directors for the purposes of PIN Rule 4.2.2 and PIN Rule 4.2.3 must include analysis of realistic scenarios relevant to the circumstances of the
Insurerand the effects that the occurrences of those scenarios would have on the capital requirements of the Insurerand on its capital resources.
PIN 4.2.4 Guidance
Insureris required to maintain adequate capital resources at all times, its systems and controls need to enable the directors to determine and monitor the capital requirements of the Insurerand the capital resources that it has available, and to identify occurrences where the capital resources fall short of the capital requirements or may fall short in the future. An Insureris not required to measure the precise amount of its capital resources and its capital requirements on a daily basis. However an Insurershould be in a position to demonstrate its capital adequacy at any time if asked to do so by the DFSA.