PINS S8.1 What is group risk?

(1) Group risk is the risk of loss to an insurer as a result of its membership of a group or linkages within a group.
(2) Group membership can be a source of both strength and weakness for an insurer.
(3) The purpose of requiring an insurer that is a member of a group to include group risk in its risk management policy is to ensure that the insurer takes proper account of the risks arising from its membership.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).