The UK-based Chartered Insurance Institute (CII) has welcomed the UAE Insurance Authority's publishing of a draft regulation consolidating rules on insurance broking and online broking transactions, highlighting how the measures will make a significant contribution to raising professional standards and instilling public trust and confidence in the sector.
Ms Gaenor Jones, regional director for the CII in the Middle East, commented, “This demonstrates further commitment by the IA to strengthen a regulatory framework covering a wide variety of operational and governance issues within the broking sector, central to which is the importance of attainment of professional qualifications provided by the CII.”
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.
The draft prescribes the criteria for filling positions in broking companies, including chief executive, operations manager, compliance officer, specialist or professional staff, branch executives and sales staff roles. It stipulates that the general manager or 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 (CII) in London or a certificate approved by a similar professional institute.
Ms Jones explained the significance of the regulation: “This is particularly welcome, because many insurance companies across the UAE, whether small or large, are working hard to adhere to professional standards, through a number of measures, pivotal to which is encouraging their employees to attain internationally recognised qualifications provided by the CII. These organisations’ alliances with brokers and intermediaries need to fully align with those standards to ensure consistency and credibility, ultimately to instil the highest levels of confidence in the consumer or end-user.”
The CII helps to drive up professional standards across International markets, working closely with a range of stakeholders including large corporations, academic institutions, training providers and government entities in its mission. The Middle East office of the International organisation, headquartered in London, was established in 2018 and works closely with the UAE Insurance Authority in its efforts to provide a favourable climate for its development and promotion of the role of the insurance industry, encouraging fair and effective competition, and to provide the best insurance services with appropriate coverage at affordable rates.