The Central Bank of the UAE (CBUAE) has announced that it has started operational procedures to assume supervisory and regulatory responsibilities over the insurance industry.
The central bank has recently formed several committees and working groups to complete the merger process.
The moves are pursuant to the decretal Federal Law No 25 of 2020 whereby decreeing the merger of the Insurance Authority into the Central Bank, reported Gulf News.
Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and chairman of the central bank, said, "The decision to merge the Insurance Authority into the Central Bank of the UAE is part of a bigger initiative to transform the Central Bank of the UAE into one of the top 10 central banks globally.”
Mr Abdulhamid M Saeed Al Alahmadi, the central bank governor, said, "Giving the central bank a broader mandate will ensure that high standards of supervision and regulation apply to all the sectors which we regulate including banking, insurance, money exchangers and payment services providers.
"Our vision to build a prosperous insurance sector protects the interests of the policyholders and ensures adequate supervision and regulation, characterised by financially strong and properly managed insurance market participants who follow the highest standards of market conduct. Such an insurance sector will be well-suited to serve the needs of our diversified and growing economy."
The central bank says it will continue to facilitate the advancement of new technologies across all elements of the UAE’s financial sector as part of its FinTech strategy, including the adoption of InsurTech for insurance services. These initiatives will make the sector more competitive, innovative and facilitate financial inclusion.
CBUAE confirms that the rules, decisions, circulars, and regulations issued by the Insurance Authority shall continue to apply to all licensed institutions and activities until replaced by regulations issued by the central bank.