The UAE's Insurance Authority has been has merged with the country's Central Bank, Dubai Ruler and Prime Minister Sheikh Mohammed bin Rashid Al-Maktoum announced on Twitter yesterday.
“Today we issued a decision to merge the Insurance Authority with the Central Bank and transfer all the powers of the Securities and Commodities Authority, operational and executive, to the local stock markets, while the Authority maintains regulation and oversight of the local financial markets,” he said.
The restructuring aims to raise the efficiency of the insurance sector and the competitiveness of the local financial markets, Mr Al-Maktoum added.
“Our government will remain flexible, supportive and fast in making appropriate economic decisions,” he said in another tweet.
The Cabinet, chaired by Mr Al Maktoum has approved the issuance of a federal decree effecting the merger. The decree allows the Central Bank to regulate, develop and supervise the insurance sector and business, to propose and implement legislation regulating the insurance sector, to receive requests for establishing and opening branches and representative offices of insurance and re-insurance companies, agents and related professions, and to issue the necessary licences for them in accordance with the laws regulating them, reported Emirates News Agency.
In addition, the bank will protect the rights of the insured and beneficiaries of the insurance business and also monitor the financial solvency of insurance companies.
The Central Bank will work to upgrade the performance and efficiency of insurance companies and bind them to industry rules and ethics, and boost their capability to provide better services to beneficiaries and foster healthy competition in the market.