(1) The Bank shall take a prospective and risk-based approach to its supervisory duties.

(2) The Bank shall verify on a continuous basis the proper operation of insurance business or reinsurance business and compliance with supervisory provisions by insurance undertakings and reinsurance undertakings.

(3) The supervision of insurance undertakings and reinsurance undertakings by the Bank shall comprise an appropriate combination of off site activities and on site inspections.

(4) The Bank shall apply the requirements laid down in these Regulations in a manner which is proportionate to the nature, scale and complexity of the risks inherent in the business of any insurance undertaking or reinsurance undertaking.