The chairman of the Financial Regulatory Authority (FRA), Dr Mohamed Farid, has stressed the critical need to build and develop comprehensive climate risk databases.
He added, in a keynote address at the IUMI MENA Forum 2025 on 28 May 2025, that the data is essential for robust planning across the insurance sector, particularly for marine insurance, given its direct ties to climate risks. He warned that a lack of accurate data severely impedes strategic planning, especially regarding carbon emissions from maritime transport fuel.
He also said that the FRA is monitoring accelerating climate changes, especially with the escalating frequency of natural disasters. Events once occurring every 70-80 years now repeat with alarming severity every 7-8 years. This dramatic shift presents substantial challenges for both regulators and insurance companies, demanding the urgent and continuous development of climate risk management tools.
Dr Farid affirmed the FRA’s unwavering commitment to balance insurance protection needs with economic advancements to strengthen the insurance sector’s capabilities. This culminated in the passage of the Unified Insurance Law last year, bolstering the financial strength of insurance companies and contributing to overall financial stability.