PIN 2.2.4 Guidance

1. The effect of PIN Rule 2.2.4 is to avoid duplication arising from complex Group structures. If an Insurer is a member of a Group whose Holding Company is another Insurer, the first Insurer need not apply PIN Rule 2.2.3 in respect of that Group, because the Insurer that is the Holding Company is already required to apply that Rule. Where an Insurer is a member of two or more Groups that are also sub-groups of a single Group, the Insurer may consider that single group as a whole for the purposes of this section. An Insurer that is a Holding Company is however still required to apply PIN Rule 2.2.3 in respect of any Group of which the Insurer is the Holding Company.
2. An Insurer should describe how its risk tolerance limits described in PIN Rule 2.2.1(c) link with its corporate objectives, business strategy and current circumstances. An Insurer is expected to embed its risk tolerance limits into its day-to-day operations and its risk management policies and procedures.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] DFSA RM99/2012 (Made 24th July 2012) [VER12/07-12]