PINS S7.2 Risk management policy — concentration risk

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

(a) identification of large risk exposures;
(b) a description of the way in which large risk exposures are being managed, controlled and mitigated by the insurer;
(c) a description of any limits put in place by the insurer to control concentration risk;
(d) identification of on-balance sheet and off-balance sheet exposures to concentration risk;
(e) risk management procedures in relation to concentration risk; and
(f) processes to ensure that the insurer's exposures to large potential losses due to concentration risk are in line with its risk tolerance.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).