Doha, Qatar, 28 October 2013: The QFC Regulatory Authority today issued new prudential rules for insurance firms operating from the Qatar Financial Centre (QFC), following extensive public consultation and dialogue with QFC firms.
“The amendments to the QFC Insurance Business Rules align the prudential framework in the QFC with recent developments in international best practice, and position the regulatory framework to meet the continued expansion in activity by QFC insurers”, said Michael Ryan, Chief Executive Officer of the QFC Regulatory Authority.
“The new rules come into force on 1 January 2015. Between now and then, the Regulatory Authority will be working with the QFC insurers as they make the transition to the new framework, in order to address any implementation issues”, Mr Ryan said.
Click here to access the Insurance Business (Risk Management, Capital Adequacy and Miscellaneous) Amendments Rules 2013.
The new rules enhance the QFC regulatory framework, particularly in the following areas:
· capital adequacy – improving risk sensitivity of the PINS risk-based capital model, by creating insurance concentration and operational risk requirements, and by streamlining and recalibrating other risk components of the prudential capital framework;
· enterprise risk management – strengthening the risk management framework by requiring an insurer’s governing body to be involved and approve an annual risk and solvency self-assessment;
· valuation – enhancing the rules and guidance relating to actuarial techniques, methods and assumptions used to value assets and insurance liabilities;
· investments – improving the management of investment risk by insurers through the establishment of asset-liability matching requirements, investment concentration limits, asset admissibility criteria and by introducing a prudent person principle; and
· insurance groups – expanding supervisory powers for the QFC Regulatory Authority relating to requests for additional information from insurers who are members of a group.
This initiative supports the QFC Regulatory Authority’s ongoing commitment to meet high international regulatory standards, and supports the continued development of the QFC as a leading financial and business centre in the region.