Entire Section
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 anInsurer that is not aDIFC Incorporated Insurer is required to calculate itsDIFC Business Risk Capital Requirement . The basis of calculation is analogous to the basis of calculation of elements of theMinimum Capital Requirement forInsurers that are notProtected Cell Companies , as set out in PIN App4.2. TheDIFC Business Risk Capital Requirement is calculated with reference to the insurance activities of theInsurer , carried out through its establishment in theDIFC , 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 itsDIFC Business Risk Capital Requirement as the sum of theInsurer's DIFC underwriting risk component, theInsurer's DIFC reserving risk component and theInsurer'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 ofContracts of Insurance effected by theInsurer , other than through an establishment in theDIFC ; and(b) no account must be taken of contracts of reinsurance entered into by theInsurer 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 anInsurer to demonstrate the availability of capital to address the risk that the cost of claims onContracts of Insurance entered into asInsurer through an establishment in theDIFC 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 itsDIFC 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 anInsurer to demonstrate the availability of capital to address the risk that the cost of claims in respect of contracts entered into asInsurer through an establishment in theDIFC will vary from the amounts recorded as liabilities in theInsurer's balance sheet.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]PIN A9.4.1
An
Insurer must calculate itsDIFC 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 itsDIFC 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]