PINS S2.7 Risk management policy — liquidity risk

An insurer's risk management policy for liquidity risk should include:

(a) consideration of the level of mismatch between expected asset and liability cash flows under normal and stressed operating conditions;
(b) the liquidity and realisability of assets;
(c) commitments to meet insurance and other liabilities;
(d) the uncertainty of the incidence, timing and magnitude of insurance liabilities;
(e) the level of liquid assets required to be held by the insurer; and
(f) other sources of funding, including reinsurance, borrowing capacity, lines of credit and intra-group funding.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).