Entire Section

  • PIN A6.10 PIN A6.10 Underwriting risk component

    • PIN A6.10 Guidance

      1. The purpose of the underwriting risk component is to require an Insurer to set aside capital to address the risk that the cost of claims will vary from the cost implicit in the premiums being charged. The provisions in this section apply the relevant provisions of PIN section A4.10 to the segments of a Protected Cell Company.
      2. As Insurance Business in Protected Cell Companies may only be carried on through Cells, every Insurer will have an underwriting risk component of zero in respect of its Minimum Non-Cellular Capital Requirement.

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

    • PIN A6.10.1

      An Insurer must calculate the underwriting risk component in respect of a segment according to the method set out in PIN section A4.10, applied as though all references in that section to an Insurer were instead references to that segment.

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