PINS 8.1.4 Asset admissibility and investment criteria

(1) An insurer may invest in assets and instruments only if the insurer:
(a) can identify, measure, monitor, manage and report on the risks arising from the assets and instruments; and
(b) can take those risks into account in the assessment of its solvency needs in accordance with these rules.
(2) Investments must be made by the insurer in such a way:
(a) as to ensure the security, quality, liquidity and profitability of its portfolio of assets; and
(b) as to avoid:
(i) over-reliance or concentration on a particular asset class, region, issuer or group of issuers; and
(ii) excessive accumulation of risk in the portfolio.
(3) Assets and securities that are not admitted to trading on a regulated financial market must be kept to prudent levels.
(4) Assets held by the insurer to cover technical provisions must be invested:
(a) as appropriate to the nature and duration of its insurance liabilities;
(b) in the best interest of all policyholders and beneficiaries; and
(c) taking into account any policy objectives disclosed by the insurer.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).