Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Mar 2021

UAE: IA sets out new regulation for brokers

Source: Middle East Insurance Review | Jan 2021

The UAE Insurance Authority (IA) has published a draft regulation consolidating rules on insurance broking and online broking transactions.
 
The draft consists of 38 articles in 13 chapters that cover matters relating to insurance broking, from licensing and registration, governance, obligations of the insurance broker and the insurance company’s obligations towards the broker, the rights of the insurance broker, solvency, financial reports and disclosures, mergers, dispute settlement, supervision and penalties.
 
Among other provisions, the draft sets out the criteria for positions in the broking company, including CEO, operations manager, compliance officer, specialist or professional staff, branch executives and sales staff.
 
For example, the general manager or the chief executive must possess a university degree in insurance, financial science, law, or insurance-related science or its equivalent duly certified, or an Associateship of the Chartered Insurance Institute (ACII) in London or a certificate approved by a similar professional institute. He must have successfully passed at least three training courses in insurance or insurance brokerage, and have practical experience in the insurance or insurance broking of not less than 10 years, or less than five years if he holds a higher academic qualification. The experience required for a UAE national is at least five years, and two years if he holds a higher academic qualification.
 
Online broking transactions
For electronic linking with an insurance company, the draft regulation requires the broker to develop and operate a website or smart application by setting standard technical interfaces to ensure the following:
  • Exchanging information electronically with the insurance company’s IT systems for the purpose of exchanging basic customer information;
  • Enabling the insurance company to assess the insured risks; and
  • Providing the customer with a price offer for the insurance policy, the payment mechanism, and policy information, once issued by the insurance company.
 
The broker has to conduct the insurance request sending and receiving insurance offers in real-time through the technical communication interfaces between his website or smart application and the company’s electronic systems.
 
When dealing with the insurance broker electronically, the insurer has to display the prices of insurance products in line with the standards of sound technical underwriting, and to notify the broker by electronic means when the policy is issued. The insurer also need to notify the broker of all the information on the policy, including the date of commencement and end of coverage, and the limits of coverage.
 
Among other requirements set out in the draft regulation, the IA stressed that insurance companies should deal only with intermediaries or price comparison sites licensed by the authority.
 
The IA said the proposed new rules update existing regulations on insurance broking. M 
 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.