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  • PIN App9 PIN App9 Calculation of DIFC Business Risk Capital Requirement

    • PIN A9.1 PIN A9.1 Purpose and general provisions

      • PIN A9.1.1 PIN A9.1.1

        This appendix applies to all Insurers to which PIN section 4.7 applies.

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

        • PIN A9.1.1 Guidance

          1. This appendix sets out the manner in which an Insurer that is not a DIFC Incorporated Insurer is required to calculate its DIFC Business Risk Capital Requirement. The basis of calculation is analogous to the basis of calculation of elements of the Minimum Capital Requirement for Insurers that are not Protected Cell Companies, as set out in PIN App4.
          2. The DIFC Business Risk Capital Requirement is calculated with reference to the insurance activities of the Insurer, carried out through its establishment in the DIFC, without deduction for reinsurances.

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

    • PIN A9.2 PIN A9.2 DIFC business risk capital requirement

      • PIN A9.2.1

        An Insurer must calculate its DIFC Business Risk Capital Requirement as the sum of the Insurer's DIFC underwriting risk component, the Insurer's DIFC reserving risk component and the Insurer's DIFC Long-Term Insurance risk component.


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

      • PIN A9.2.2

        In calculating the DIFC Business Risk Capital Requirement:

        (a) no account must be taken of Contracts of Insurance effected by the Insurer, other than through an establishment in the DIFC; and
        (b) no account must be taken of contracts of reinsurance entered into by the Insurer as cedant, regardless of where those contracts of reinsurance were entered into.

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

    • PIN A9.3 PIN A9.3 DIFC underwriting risk component

      • PIN A9.3 Guidance

        The DIFC underwriting risk component requires an Insurer to demonstrate the availability of capital to address the risk that the cost of claims on Contracts of Insurance entered into as Insurer through an establishment in the DIFC will vary from the cost implicit in the premiums being charged.


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

      • PIN A9.3.1

        An Insurer must calculate its DIFC underwriting risk component according to the method set out in PIN section A4.10, subject to the modifications set out in Rules PIN A9.2.2(a) and (b).


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

    • PIN A9.4 PIN A9.4 DIFC reserving risk component

      • PIN A9.4 Guidance

        The DIFC reserving risk component requires an Insurer to demonstrate the availability of capital to address the risk that the cost of claims in respect of contracts entered into as Insurer through an establishment in the DIFC will vary from the amounts recorded as liabilities in the Insurer's balance sheet.


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

      • PIN A9.4.1

        An Insurer must calculate its DIFC Long-Term Insurance risk component according to the method set out in PIN section A4.12, subject to the modifications set out in Rules PIN 9.2.2(a) and (b).


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

    • PIN A9.5 PIN A9.5 DIFC long-term insurance risk component

      • PIN A9.5.1

        An Insurer must calculate its DIFC Long-Term Insurance risk component according to the method set out in PIN section A4.12, subject to the modifications set out in Rules PIN 9.2.2(a) and (b).


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