UAE: Insurers need to start aligning with regulatory changes - Badri
Source: Middle East Insurance Review | Jun 2015
Insurance companies in the UAE should start aligning themselves with the new financial regulations introduced by the Insurance Authority (IA) even though a grace period has been given, said Mr Hatim Maskawala, Managing Director of Badri Management Consultancy (BMC).
Speaking at a workshop organised by BMC, Mr Maskawala explained that there might be system and operational changes required, apart from changes in investment strategy. Insurers have between one and three years to adopt the various standards imposed by the regulations.
Giving a detailed presentation on the contents and implications of the regulations, Mr Maskawala pointed out that the rules are in line with Solvency II, and place a big emphasis on risk management and governance. Apart from meeting solvency requirements, each insurance company will need to quantify its risk appetite and put in place a risk management function.
A panel discussion debated some areas of the regulations, such as limits on investments (is it a hard cap or only for admissible assets calculation?), how the regulations apply to companies with regional subsidiaries and associates, and the takaful models allowed under the regulations. These areas still require further discussions with the IA, said BMC.
The panel also reiterated Mr Maskawala’s message to think of actuaries as business enablers, and the advantages of using them as analytical consultants to grow business profitably.
The event was attended by 110 professionals from 57 companies.