• CAPI Chapter 9 CAPI Chapter 9 Transfer of insurance business

    • CAPI 9.1.1 Application of chapter 9

      This chapter applies to a firm that is a QFC captive insurer if the firm effects an insurance business transfer.

      Note Provisions on insurance business transfers may also be found in the Financial Services Regulations, part 16 (Control of Business Transfers).

      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 9.1.2 Definitions for chapter 9

      (1) For this chapter:

      interested party, in relation to a firm that is the transferor under a relevant scheme, means a policyholder of the firm affected by the scheme.

      relevant scheme means a scheme effecting an insurance business transfer.

      transferee under a relevant scheme (or proposed relevant scheme) means the insurer to which the insurance business transfer under the scheme is being made (or proposed to be made).

      transferor under a relevant scheme (or proposed relevant scheme) means the firm making (or proposing to make) the insurance business transfer under the scheme.
      (2) Insurance business transfer, by a firm, means the transfer of all or part of the business of effecting or carrying out contracts of insurance or reinsurance undertaken by the firm in or from the QFC.
      (3) However, insurance business transfer does not include—
      (a) the transfer of business relating to contracts of reinsurance entered into between members of the same group; and
      (b) the transfer of business of all of a firm's business that consists solely of effecting and carrying out contracts of reinsurance in or from the QFC if all the policyholders of the transferor who will be affected by the transfer have consented to it; and
      (c) the transfer of business of all of a firm's business if—
      (i) all the policyholders of the firm are controllers of the firm or firms in the same group as the transferee; and
      (ii) all the policyholders of the transferor who will be affected by the transfer have consented to the transfer.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 9.1.3 Form and content of scheme report

      (1) For the Financial Services Regulations, article 97 a scheme report must be in writing and must include the following matters:
      (a) the names and contact details of the transferor and transferee;
      (b) the purpose of the relevant scheme;
      (c) a description of the business (including categories of contracts of insurance), assets, rights and liabilities (including technical provisions, premiums and claims incurred) to be transferred;
      (d) the terms of the agreement or deed under which the transfer will be carried out;
      (e) particulars of any other arrangements necessary to give effect to the transfer;
      (f) the effects of the transfer on interested parties, including any action that interested parties must or may take before, or because of, the transfer;
      (g) a comparison between the likely effects on interested parties of implementing the transfer and not implementing the transfer;
      (h) a statement about any alternative schemes considered in preparing the report and how the proposed relevant scheme compares with those alternative schemes, particularly in their likely effects on interested parties;
      (i) if different groups of interested parties are likely to be affected in different ways by the scheme — a statement about the material differences in the ways the groups are likely to be affected;
      (j) the compensation (if any) offered to interested parties for any loss of rights or expectations;
      (k) the likely effect of the scheme on investment management, new business strategies, administration, expense levels, and valuation basis, so far as they may affect—
      (i) interested parties' contractual rights; and
      (ii) levels of service provided to interested parties;
      (l) any other matters that the entity preparing the report considers should be included in the report.
      (2) The scheme report must also include:
      (a) a statement that—
      (i) there will be no materially adverse consequences from the proposed transfer to the policyholders of either the transferor or the transferee; and
      (ii) the transferor and transferee will, if applicable, meet their minimum capital requirements after taking the proposed transfer into account; and
      (b) a description of—
      (i) any reinsurance arrangements that will be transferred to the transferee under the scheme; and
      (ii) any guarantee or additional reinsurance proposed to cover the business that will be transferred or retained by the transferor.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 9.1.4 Summary of scheme

      The scheme report must include a summary of the proposed relevant scheme which contains, at a minimum, the following:

      (a) the names and contact details of the transferor and transferee;
      (b) a statement that the firm intends to transfer the policy or policies of interested parties to another insurer, on or after a stated date;
      (c) a short explanation of the likely effects of the transfer on interested parties, including any action that interested parties must or may take before, or because of, the transfer;
      (d) information about the right of interested parties to be heard at a hearing on the application for approval of the scheme;
      (e) if interested parties do not need to take any action before, or because of, the transfer-a statement to that effect;
      (f) the compensation (if any) offered to interested parties for any loss of rights or expectations;
      (g) a statement about how the relevant scheme compares with alternative schemes considered by the entity that prepared the scheme report;
      (h) how interested parties can obtain further information and inspect relevant documents as may be available for public inspection.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 9.1.5 Notice of intention and summary of report

      (1) The transferor under a proposed relevant scheme must give written notice of the scheme to every interested party.
      (2) The notice may be given personally or sent by prepaid post to the interested party's last-known postal address.
      (3) The notice must include—
      (a) a statement about where and when an interested party may—
      (i) obtain a copy of the scheme report; and
      (ii) obtain further information about the proposed relevant scheme; and
      (iii) inspect any associated documents that may be available for inspection by interested parties; and
      (b) the summary under rule 9.1.4.
      (4) The transferor must also give a copy of the notice to the Regulatory Authority.
      (5) The notice must be published—
      (a) in Arabic in an Arabic newspaper approved by the Authority; and
      (b) in English in an English newspaper approved by the Authority; and
      (c) together with a copy of the scheme report, in Arabic and English on an approved website.
      (6) The period within which an interested party must be able to obtain a copy of the scheme report must be at least 30 days beginning on the day the notice is published (or last published) in accordance with subrule (5).
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)