Prudential — Insurance Business Module (PIN)chapter by chapter

Rule 2.3.62 - Management and Control of Risk — Rule 2.3.6

Firms must maintain a risk management system with an explicit asset-liability management policy covering ALM activities and their links to product development, pricing and investment management.

Rule 2.4.12 - Management and Control of Risk — Rule 2.4.1

Insurance firms must maintain records adequate to meet their obligations under insurance contracts effected and to demonstrate compliance with the PIN Rules.

Rule 3.6.13 - Long-Term Insurance Business — Rule 3.6.1

DIFC-incorporated insurers may not write long-term contracts with guaranteed returns or discretionary bonus features without prior DFSA written permission, supported by pricing and risk management details.

Rule 3.6.23 - Long-Term Insurance Business — Rule 3.6.2

A DIFC incorporated Insurer conducting Direct Long-Term Insurance must adequately supervise that business in every jurisdiction where it is carried on.

Rule 4.9.14 - Capital Adequacy — Rule 4.9.1

Insurers may not distribute profits or surplus, or return capital, if doing so would cause non-compliance with any capital adequacy provision.

Rule 5.7.25 - Measurement of Assets and Liabilities of Insurers — Rule 5.7.2

An Insurer that is parent of a Financial Group must value investments in qualifying subsidiaries and associates at its proportionate share of capital resources, less its share of capital requirement.

Rule 5.8.25 - Measurement of Assets and Liabilities of Insurers — Rule 5.8.2

Insurers must not treat amounts recoverable from an ISPV as an asset, reinsurance, or otherwise assign them value in liability calculations without first obtaining a DFSA waiver.

Rule 6.5.116 - Financial and Other Reporting by Insurers — Rule 6.5.11

Insurers must, within one month of a DFSA notice that a return is inaccurate or incomplete, correct errors, remedy omissions and resubmit the affected return parts.

Rule 6.5.126 - Financial and Other Reporting by Insurers — Rule 6.5.12

Insurers must submit any report on their affairs given to shareholders or policyholders with, or as soon as practicable after, each Annual Regulatory Return.

Rule 7.4.17 - Actuaries — Rule 7.4.1

Firms appointing an Actuary need a binding written agreement requiring timely report delivery for the Annual Regulatory Return and empowering the Actuary to escalate concerns to directors and the DFSA.

Rule 7.4.27 - Actuaries — Rule 7.4.2

Insurers must arrange for the appointed Actuary to perform functions, keeping the Actuary informed of business plans, ensuring familiarity with PIN Rules, and providing access to data and personnel.

Rule 8.1.28 - Consolidated Supervision — Rule 8.1.2

Financial groups must include any entity the DFSA directs in writing, and may exclude entities only with prior DFSA written approval where inclusion would be misleading or inappropriate.

Rule 8.2.18 - Consolidated Supervision — Rule 8.2.1

Insurers that are members of a group must establish and maintain systems and controls to monitor group effects on the insurer and compliance with financial group supervision, including funding and reporting.

Rule 8.4.28 - Consolidated Supervision — Rule 8.4.2

Insurers must ensure related-party transactions are on fair, reasonable terms and clearly, accurately record their nature and details in books and accounts.

Rule 8.5.18 - Consolidated Supervision — Rule 8.5.1

DIFC Incorporated Insurers must not enter specified significant related-party or reinsurance transactions unless directors are satisfied after reasonable enquiry that policyholder interests are not adversely affected.

Rule 9.6.19 - Insurers in Run-off — Rule 9.6.1

DIFC Insurers in run-off require DFSA written consent before making distributions, adhering to any specified timeframes.

Rules 1.1.1-1.1.21 - Application — Rules 1.1.1-1.1.2

Insurers are subject to this PIN module unless a provision narrows its application, and Authorised ISPVs are exempt from Chapters 2, 3, 4, 6, 7 and 9 unless expressly stated otherwise.

Rules 2.2.1-2.2.22 - Management and Control of Risk — Rules 2.2.1-2.2.2

Firms must maintain risk management systems covering all material financial and non-financial risks, linking risk tolerance, capital requirements and monitoring, under a senior-management-approved written risk management strategy.

Rules 2.2.3-2.2.42 - Management and Control of Risk — Rules 2.2.3-2.2.4

An Insurer in a Group must take reasonable steps to ensure the Group complies with risk management requirements as if it were an Insurer, subject to holding company exceptions.

Rules 2.3.1-2.3.32 - Management and Control of Risk — Rules 2.3.1-2.3.3

Insurers must develop, implement and maintain risk management systems covering balance sheet, market, credit quality, and non-financial operational risks such as technology, fraud, outsourcing and business continuity.

Rules 2.3.4-2.3.52 - Management and Control of Risk — Rules 2.3.4-2.3.5

Insurers must maintain a risk management system addressing reinsurance risk, including a written reinsurance management strategy with documented objectives suited to their size and complexity.

Rules 2.5.2-2.5.52 - Management and Control of Risk — Rules 2.5.2-2.5.5

Insurers must limit Class 7(b) premiums, insure only rated entities, cap contract duration, and notify DFSA before starting the business.

Rules 3.2.1-3.2.63 - Long-Term Insurance Business — Rules 3.2.1-3.2.6

Insurers must establish and maintain Long-Term Insurance Funds, or notify the DFSA of single-fund status, and separately record each fund's assets, liabilities, revenues and expenses.

Rules 3.3.1-3.3.43 - Long-Term Insurance Business — Rules 3.3.1-3.3.4

Insurers must attribute Long-Term Insurance contracts to a Long-Term Insurance Fund and may not attribute General Insurance contracts to such a fund, except as permitted for General Insurance Classes 1 or 2.

Rules 3.4.1-3.4.43 - Long-Term Insurance Business — Rules 3.4.1-3.4.4

Insurers must record all assets, liabilities, revenues and expenses of long-term insurance fund contracts to that fund, keeping records that identify the contracts and fund-attributable amounts.

Rules 3.5.1-3.5.63 - Long-Term Insurance Business — Rules 3.5.1-3.5.6

Long-Term Insurance Funds must use assets exclusively for attributed business and follow specific rules for transferring assets and inter-fund arrangements.

Rules 4.1.3-4.1.44 - Capital Adequacy — Rules 4.1.3-4.1.4

For capital adequacy, use approved ratings from specific agencies unless otherwise permitted by DFSA.

Rules 4.2.2-4.2.44 - Capital Adequacy — Rules 4.2.2-4.2.4

Insurers must maintain capital resources directors consider adequate, ensure direct long-term insurance premiums cover technical provisions and future policy benefits, and run director-level capital-impact scenario analysis.

Rules 4.3.2-4.3.44 - Capital Adequacy — Rules 4.3.2-4.3.4

Insurers that are not Protected Cell Companies must at all times keep Adjusted Capital Resources at or above their Minimum Capital Requirement.

Rules 4.4.2-4.4.74 - Capital Adequacy — Rules 4.4.2-4.4.7

A Protected Cell Company insurer must keep non-cellular and per-cell capital resources at or above their respective minimum capital requirements at all times.

Rules 4.6.3-4.6.54 - Capital Adequacy — Rules 4.6.3-4.6.5

An insurer running long-term insurance business through a fund must always hold adjusted fund capital resources at or above the minimum fund capital requirement for each long-term insurance fund.

Rules 4.7.2-4.7.44 - Capital Adequacy — Rules 4.7.2-4.7.4

Non-DIFC Insurers must maintain qualifying assets to cover DIFC Insurance Liabilities and demonstrate compliance to the DFSA upon request.

Rules 4.8.1-4.8.34 - Capital Adequacy — Rules 4.8.1-4.8.3

An insurer aware of possible non-compliance with capital adequacy rules must notify the DFSA immediately, stop writing new contracts, and make no profit distributions without written DFSA permission.

Rules 5.1.2-5.1.65 - Measurement of Assets and Liabilities of Insurers — Rules 5.1.2-5.1.6

Insurers must recognise and measure assets and liabilities under Chapter 5 measurement rules, permitting conservative departures and approximations where not materially different, and must follow any DFSA written direction on alternative measurement principles.

Rules 5.2.1-5.2.25 - Measurement of Assets and Liabilities of Insurers — Rules 5.2.1-5.2.2

Insurers must classify all insurance and reinsurance contracts by Class of Business in their own records, separately recording portions of multi-Class contracts unless the portions are immaterial.

Rules 5.3.2-5.3.35 - Measurement of Assets and Liabilities of Insurers — Rules 5.3.2-5.3.3

Insurers must use International Financial Reporting Standards as the basis for recognising and measuring assets and liabilities, and reflect changes in valuation assumptions immediately.

Rules 5.4.2-5.4.125 - Measurement of Assets and Liabilities of Insurers — Rules 5.4.2-5.4.12

Insurers must recognise and measure general insurance premiums, reinsurance held, acquisition expenses, premium and outstanding claims liabilities under prescribed triggers and the IFRS 17 measurement model.

Rules 5.6.2-5.6.55 - Measurement of Assets and Liabilities of Insurers — Rules 5.6.2-5.6.5

Insurers must recognise and measure long-term insurance premiums, acquisition costs and maintenance expenses under prescribed recognition triggers, and calculate insurance contract liabilities using the applicable IFRS 17 model.

Rules 6.2.1-6.2.56 - Financial and Other Reporting by Insurers — Rules 6.2.1-6.2.5

Insurers must prepare an Annual Regulatory Return at each reporting period end and notify the DFSA in writing, with reasons and alternative methodology, if liability values are inconsistent with the Actuary's estimate.

Rules 6.3.1-6.3.46 - Financial and Other Reporting by Insurers — Rules 6.3.1-6.3.4

Insurers must prepare a quarterly regulatory return at each quarter end, comprising Appendix 10 statements, supplementary notes and directors' statement, except Class 1 captives absent DFSA direction.

Rules 6.4.1-6.4.36 - Financial and Other Reporting by Insurers — Rules 6.4.1-6.4.3

Insurers must have their annual regulatory return, excluding listed non-audited statements, audited under International Standards on Auditing, with the auditor reporting to directors and the DFSA.

Rules 6.5.1-6.5.66 - Financial and Other Reporting by Insurers — Rules 6.5.1-6.5.6

Insurers must submit the Annual Regulatory Return and Statement by Directors to the DFSA within four months of reporting date, and retain signed records for six years.

Rules 6.5.7-6.5.106 - Financial and Other Reporting by Insurers — Rules 6.5.7-6.5.10

Insurers must file the quarterly regulatory return with the DFSA within one month of quarter-end, with a director-signed statement, and retain a signed hard copy for six years.

Rules 6.6.1-6.6.26 - Financial and Other Reporting by Insurers — Rules 6.6.1-6.6.2

Financial Groups must prepare and file a Capital Adequacy Report bi-annually, containing prescribed content, within set timeframes.

Rules 6.6.1-6.6.2-26 - Financial and Other Reporting by Insurers — Rules 6.6.1-6.6.2

Financial groups subject to group capital requirements must file mid-year and year-end Financial Group Capital Adequacy Reports, with auditor statements, within one or four months.

Rules 7.2.3-7.2.47 - Actuaries — Rules 7.2.3-7.2.4

Insurers must give the DFSA a written actuarial report at each reporting date on general insurance business, covering experience, liability estimates, assumptions, models, and sensitivity analysis by class.

Rules 7.3.2-7.3.87 - Actuaries — Rules 7.3.2-7.3.8

Actuaries must carry out an annual investigation and report on each long-term insurance fund, delivered to the DFSA within four months of the reference date.

Rules 7.4.3-7.4.57 - Actuaries — Rules 7.4.3-7.4.5

Insurers must file actuarial reports with the DFSA alongside the Annual Regulatory Return, segregate DIFC business reporting for non-DIFC insurers, and allow abbreviated reporting for immaterial classes.

Rules 7.5.2-7.5.47 - Actuaries — Rules 7.5.2-7.5.4

Firms must notify the DFSA in writing of each proposed actuary's name, qualifications and experience, comply with DFSA replacement notices, and immediately report actuary resignations or terminations with reasons.

Rules 8.3.1-8.3.28 - Consolidated Supervision — Rules 8.3.1-8.3.2

Determine applicability of financial group capital requirements, which may be excluded based on existing supervision by DFSA or other regulators.

Rules 8.3.3-8.3.68 - Consolidated Supervision — Rules 8.3.3-8.3.6

Financial groups must at all times hold capital resources equal to or exceeding the group capital requirement, excluding non-transferable surplus capital of subsidiaries.

Rules 8.5.2-8.5.48 - Consolidated Supervision — Rules 8.5.2-8.5.4

Firms must report shareholder dividends and Takaful surplus distributions within 21 days, and notify the DFSA in writing within 30 days of related-body-corporate investments exceeding 10% of paid-up capital.

Rules 8.5.2-8.5.4-28 - Consolidated Supervision — Rules 8.5.2-8.5.4

Licensed firms must report shareholder dividends and Takaful policyholder distributions within 21 days of declaration, and notify the DFSA within 30 days of related-body-corporate investments exceeding 10% of paid-up capital or voting rights.

Rules 9.2.2-9.2.39 - Insurers in Run-off — Rules 9.2.2-9.2.3

Insurers must notify the DFSA in writing within 28 days of deciding to stop writing new insurance contracts in a class, and cannot resume without DFSA permission.

Rules 9.3.2-9.3.79 - Insurers in Run-off — Rules 9.3.2-9.3.7

Insurers in run-off must give the DFSA a written run-off plan covering liability settlement, ongoing compliance, business strategy, financial projections and stress testing, and update it on request.

Rules 9.4.2-9.4.129 - Insurers in Run-off — Rules 9.4.2-9.4.12

Insurers in run-off subject to a DFSA collateral notice must provide specified collateral or letter of credit, report custody terms, reassess collateral quarterly, and top up or reduce it as required.

Rules 9.5.2-9.5.39 - Insurers in Run-off — Rules 9.5.2-9.5.3

Insurers in run-off must notify the DFSA about Related-party, run-off-management, or reinsurance-of-run-off contracts and provide additional details upon request.

Rules 10.1.2-10.1.810 - Insurance Special Purpose Vehicles — Rules 10.1.2-10.1.8

An Authorised ISPV must keep assets at least equal to liabilities, maintain a risk management system, cap reinsurance liability at asset value, subordinate debt to reinsurance creditors, and limit contracts to its reinsurance purpose.

Rules A10.2.1-A10.4.8App10 - Reporting to the DFSA — Rules A10.2.1-A10.4.8

Insurers must complete prescribed DFSA returns in English and US dollars in thousands, with comparatives, and Statement-by-Directors pages identifying return type, licence number, insurer name, and reporting unit.

Rules A10.5.1-A10.5.4App10 - Reporting to the DFSA — Rules A10.5.1-A10.5.4

Every DFSA return must include a Directors' Statement confirming compliance; annual returns add accounting records and controls attestations, with Supplementary Notes for any statement directors cannot make.