CAPI 10.2.6 Period of run-off plan
(1) A firm must ensure that a run-off plan given to the Regulatory Authority covers the period until all liabilities to policyholders relating to the captive insurance business in run-off are met.
(2) The run-off plan must include—
(a) an explanation of how, and the extent to which, liabilities to policyholders will be met in full as they fall due; and
(b) an explanation of how, and the extent to which, the firm will maintain its compliance with the requirements of these rules until all liabilities to policyholders are met; and
(c) a description, appropriate to the scale and complexity of the firm's business, of its business strategy; and
(d) financial projections showing, in a form appropriate to the scale and complexity of the firm's operations, the forecast financial position of the firm as at the end of each reporting period during the period covered by the run-off plan; and
(e) an assessment of the sensitivity of the financial position of the firm to stress arising from realistic scenarios relevant to the circumstances of the firm; and
(f) details of planned run-off reinsurance protections and the extent to which the protections match the scenarios mentioned in paragraph (e); and
(g) details of the claims handling and reserving strategy; and
(h) details of the cost of the management of the run-off.
(3) For a cell or long term insurance fund in run-off, the run-off plan must deal with the matters in subrule (2) so far as they relate to the cell or long term insurance fund.
|Derived from QFCRA RM/2011-1 (as from 1st July 2011)|