PINS A3.4 Guidance

An insurer may be exposed to various investment risks through transactions or dealings other than those reflected in its balance sheet. The purpose of the off-balance sheet asset risk component is to require an insurer to hold capital to cover the risk of default and deterioration in value of exposures that the insurer has because it is party to a derivative contract.

Amended by QFCRA RM/2011-4 (as from 1st July 2011).