New regulations, including reinsurers, are on the horizon for the UAE’s fast-growing insurance market, according to Mr Ibrahim Obaid Al Zaabi, Director General of the UAE Insurance Authority (IA).
Speaking at a seminar in June organised by the law firm BSA Ahmad Bin Hezeem & Associates on the latest insurance regulatory development, Mr Al Zaabi outlined new laws in the pipeline including: preparation and issuance of legislative frameworks for the licensing of reinsurance companies; draft law for licensing offices of insurance companies; draft law concerning electronic insurance directives; and new legislative framework for establishment of a compensation fund for the victims of unknown or uninsured vehicle accidents.
The Director General also set out his key strategic priorities for the insurance sector, including raising awareness levels among the general public, as well as measures to promote a greater level of Emiratisation in the insurance industry.
He said: “To address the gap in Emiratisation levels, particularly in certain technical positions, the IA will operate a points system in line with an ambitious training and rehabilitation programme. Insurers will be scored based on Emiratisation percentages and investment levels in training and development.
“We will support the industry through cooperation agreements with specialised organisations such as the Chartered Insurance Institute, the Association of Compliance Officers, and the American Academy of Actuaries. We will be introducing the initiative ‘My Skills’ for free training of nationals in cooperation with the best global institutes.”
The seminar was moderated by BSA Senior Associate Raghad Hammad, who captured the pulse of the insurance community by surveying attendees beforehand and articulating key observations and concerns.
The wide-ranging discussions covered competition in the life insurance sector in light of the draft Circular No. 12 of 2017 (Regarding Life Insurance and Family Takaful Business in the UAE), recently issued regulations from the Emirates Securities and Commodities Authority (ESCA) aimed at regulating the promotion of foreign funds, and forthcoming regulation on bancassurance.
The event brought together key stakeholders from across the insurance sector, including insurers, reinsurers, intermediaries, government officials, and prominent industry leaders, including Mr Fareed Lutfi, Secretary General, Emirates Insurance Association.
Mr Lutfi called for close coordination between all stakeholders, particularly at a regulatory level.
Mr Al Zaabi echoed this with an emphasis on close cooperation between the IA and other government agencies, including the Dubai Health Authority (DHA), the Central Bank, ESCA, the DIFC and the Abu Dhabi Global Market (ADGM).
The DHA was represented at the seminar by Dr Haidar Al Yousuf, Director of Health Funding of DHA, who discussed the new health insurance payment system covering clinical pricing and inpatient stay classification methodology.
The new system is currently being rolled out to all hospitals and clinics in Dubai; with full implementation expected by 2019. M