• PINS Part 3.7 PINS Part 3.7 Operational risk requirement

    Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

    • PINS 3.7 Guidance [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 3.7.1 What is an insurer's operational risk requirement?

      (1) The amount of an insurer's operational risk requirement (ORR) is 2% of whichever is the higher of:
      (a) the insurer's gross written premiums in the 12 months ending on the solvency reference date; and
      (b) its technical provisions (without deduction for reinsurance) as at the solvency reference date.

      Note Technical provisions must cover all insurance liabilities of the insurer, including outstanding claims liabilities (whether or not reported), future claims (premium liabilities) and any reserves held by the insurer for the purpose of meeting insurance liabilities.
      (2) However, if the amount calculated under subrule (1) is more than the amount of the ceiling calculated by means of the formula in subrule (3), the insurer’s ORR is the amount of the ceiling.
      (3) The formula is:

      IRR is the insurer’s investment risk requirement.
      InsRR is the insurer’s insurance risk requirement.  
      Amended by QFCRA RM/2015-1 (as from 1st July 2015)
      Amended by QFCRA RM/2020-6 (as from 15th October 2020).