PIN 4.1.1 Guidance

1. The amount of capital is fundamental to the financial health of any insurance undertaking and therefore to the protection of its policyholders. All Insurers are therefore required to maintain a minimum level of capital resources in accordance with this chapter.
2. This chapter establishes minimum required levels of capital resources applicable to Insurers of different types. PIN section 4.2 establishes provisions that are applicable to all Insurers, wherever they are incorporated and of whatever type they are. PIN section 4.3 establishes Minimum Capital Requirements in respect of Insurers other than Protected Cell Companies, and PIN section 4.4 establishes equivalent requirements in respect of Protected Cell Companies. Additional provisions are established by PIN section 4.6, in respect of Insurers maintaining Long-Term Insurance Funds, and by PIN section 4.7, in respect of Insurers that are not DIFC Incorporated Insurers.
3. The DFSA has the power under the Regulatory Law 2004 to act if it believes that any requirement of this chapter is breached, or that it may be breached in the future.

Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]