Entire Section

  • PIN 4.7.2 PIN 4.7.2

    An Insurer that is not a DIFC Incorporated Insurer must always have assets, of a type referred to in PIN Rule 4.7.3, that are available to meet Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC, at least equal to the sum of the following:

    (a) the sum of the default risk component and the investment volatility risk component in respect of those assets, calculated according to the methods set out in sections PIN A4.4 and PIN A4.5 respectively, applying those methods so far as concerns those assets only;
    (b) Insurance Liabilities of the Insurer in respect of its DIFC Insurance Business; and
    (c) the Insurer's DIFC Business Risk Capital Requirement, calculated in accordance with PIN App9.
    Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
    [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 4.7.2 Guidance

      1. Assets are not normally available to meet Insurance Liabilities of an Insurer arising in respect of operations conducted by the Insurer in the DIFC, if those assets are required to meet liabilities of the Insurer in jurisdictions other than the DIFC, except where those liabilities are also Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC.
      2. Assets are not normally available to meet Insurance Liabilities of an Insurer arising in respect of operations conducted by the Insurer in the DIFC, if those assets are required, under the laws of any jurisdiction, to be located in a jurisdiction other than the DIFC, except where the assets are required to be located in that jurisdiction to meet, or as collateral against, either:
      a. liabilities that are Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC; or
      b. liabilities that may arise in the future and that would, if they arose, be Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]