INMA 4.3.3 Suitability of professional indemnity insurers

(1) Before an INMA firm takes out or renews a professional indemnity insurance policy with an insurer, the firm must be satisfied, on reasonable grounds after making an appropriate assessment, that the insurer is suitable to provide the policy to the firm.
(2) The firm must have systems and controls to ensure that the assessment remains correct.
(3) In assessing whether an insurer is suitable, the firm must have regard to all the relevant circumstances, including the following:
(a) the insurer’s credit rating, capital and financial resources;
(b) its regulatory status and history;
(c) its expertise and market reputation;
(d) the regulatory and legal regimes of the jurisdiction in which it is located.

Note Jurisdiction is defined in the glossary.
(4) Without limiting subrule (1), an insurer that is not authorised in the QFC to conduct insurance business, and does not have an equivalent authorisation in Qatar or a zone 1 country, is suitable to provide a professional indemnity insurance policy to the firm only if all of the requirements in subrule (6) are met.
(5) The zone 1 countries are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.
(6) The requirements are:
(a) that the insurer is rated at least BBB by Standard & Poor’s or the equivalent by another rating agency;
(b) that the firm has given notice to the Regulatory Authority about its intention to take out or renew the insurance policy with the insurer; and
(c) that either:
(i) the firm has received written notice from the authority stating that it does not object to the firm’s taking out or renewing a policy with the insurer; or
(ii) 28 business days has elapsed since the firm gave the notification to the authority and the authority has not notified the firm in writing that the authority objects to the firm’s taking out or renewing a policy with the insurer.
(7) If, at any time after the firm has taken out or renewed a professional indemnity insurance policy with an insurer, the authority considers that the insurer is, or is likely to become, unsuitable to provide the policy, the authority may, by written notice to the firm, require the firm to cancel the policy and take out equivalent professional indemnity insurance with another insurer in accordance with this rule.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).