The UAE Insurance Authority (IA) is considering to launch a new stimulus package as part of a series of measures to support the insurance sector amid the COVID-19 crisis.
The Emirates Insurance Association (EIA) in April submitted 28 requests insurance companies recommended to be included in the forthcoming stimulus package, which would be introduced to support insurance companies to counter the fallout from the COVID-19 outbreak, according to Al-Roya newspaper.
The report revealed that the IA has approved some of these recommendations to be included in the stimulus package and would coordinate with other relevant authorities to implement other requests.
Among the demands which the IA is said to have approved include exempting insurance companies from certain fees including supervision and control, training and licensing fees. Insurers have also requested the authority to consider freezing the Emiratisation ratio goal for 2020. Companies have noted that the goal in 2020 will be to preserve citizens working in the sector, rather than conduct new employments. The authority is also to exempt companies from the use of signed and sealed paper documents and confine transactions to emails or using the scheme which the IA has adopted. The IA would also approve to postpone the implementation of the Authority’s Board of Directors Resolution No. 23 of 2019 regarding the regulation of reinsurance business.
Additionally, insurers have demanded to be compensated for their losses resulting from COVID-19 coverage, and have asked for long-term interest-free (or low interest rates) loans. They have also asked to be recipients of any stimulus fund the government launches.
The IA pointed out that it will coordinate with the Central Bank of the UAE on the possibility of implementing these measures to support the insurance sector to counter the consequences of COVID-19.
The IA has coordinated with the health authorities in the UAE to arrange for payment of claims to service providers to be in line with the signed agreements, exempt or reduce fees of medical claims imposed by Dubai Health Authority and to exempt insurers from fees imposed by the Health Authority of Abu Dhabi on delays in providing the required data.