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2. Definitions
FINANCIAL SERVICES LEGISLATION
RULES
INSURANCE AND REINSURANCE PRUDENTIAL RULES
SCHEDULE 2 Categories of Long-Term Insurance
SCHEDULE 6. Prudential returns by Insurers
WORKING SCHEDULE 1 - List of Defined Terms for PINS and associated rulebooks
Entire Act

2. Definitions

2.1. Risk-Based Capital Requirement

(1) The Risk-Based Capital Requirement for an AIFC-Incorporated Insurer that, under PINS 5.3.1 (Approval by AFSA), has been approved to use its own internal model to calculate its Risk-Based Capital Requirement is the amount calculated using that model.

(2) The Risk-Based Capital Requirement for an AIFC-Incorporated Insurer that, under PINS 5.3.1 (Approval by AFSA), has been approved to use its own internal model to replace 1 or more components of its Investment, Insurance and Operational Risk Requirements is the amount calculated using those components as replaced and the other components of the AIFC-Incorporated Insurer’s Investment, Insurance and Operational Risk Requirements.

(3) The Risk-Based Capital Requirement for any other AIFC-Incorporated Insurer is the sum of the AIFC-Incorporated Insurer’s:

2.3. Insurance Risk Requirement

An AIFC-Incorporated Insurer’s Insurance Risk Requirement is the sum of its:

2.4. Operational Risk Requirement

(1) The amount of an AIFC-Incorporated Insurer’s Operational Risk Requirement is 2% of whichever is the higher of:

  1. (a) the AIFC-Incorporated Insurer’s gross written premiums in the 12 months ending on the Solvency Reference Date; and
  2. (b) its technical provisions (without deduction for reinsurance) as at the Solvency Reference Date.

(2) However, if the amount calculated under subrule (1) is more than a ceiling, calculated as: then the AIFC-Incorporated Insurer’s Operational Risk Requirement is the amount of the ceiling.

then the AIFC-Incorporated Insurer’s Operational Risk Requirement is the amount of the ceiling.