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UAE: IA to review licence applications based on ability to innovate

Source: Middle East Insurance Review | Nov 2017

United Arab Emirates

The UAE Insurance Authority (IA) is ready to review applications for licences for new insurers if they can provide new and additional products and services to the market, according to Mr Ebrahim Obaid Al Zaabi, Director General of the IA.
 
   Minister of Economy Sultan Bin Saeed Al Mansoori, Chairman of the IA, said: “Innovation is becoming an urgent necessity and not an option in all areas of business and investment.”
 
   The two industry leaders made the comments at the launch of the two-day First Insurance Conference for Innovation in Dubai in early October.
 
   The Authority said that it will launch a “laboratory for innovations” in cooperation with the relevant authorities to support technological development, innovation and customer needs.
 
   Mr Al Zaabi said: “The Authority supports and reinforces the culture of innovation by ensuring that innovation is an approach to its work in the insurance sector, which contributes to supporting UAE’s position on the global innovation map.”
 
   He told the media at a briefing that “all transactions at the Authority can be completed electronically”. In addition, work has begun on two new smart services for complaints and renewal and licensing transactions.
 
   Even while the IA will study insurance licence applications from innovative entities, that could include InsurTech companies, it also encourages mergers between insurers in the local market which is saturated with traditional players.
 
Emiratisation points system starts next year
Mr Al Zaabi also said that the Emiratisation points-based system for the insurance industry will be implemented in 2018. Under the system, target points will be set for insurers based on their gross premiums.
 
   The system rewards effort made by insurers in developing the skill set of their Emirati workforce. Points are also given based on actual job generation and the quality of jobs created for locals. Insurers can score high points if they have Emiratis working in senior and mid-level positions rather than non-managerial roles. Insurers that fail to meet the points designated for them will face fines. The rate of Emiratisation in the sector is currently around 12%. M 
 
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