“This will contribute to breaking the monopoly of international reinsurance companies in the region and shall plug the gap resulting from the cessation of most regional reinsurers.”. Overall, the renewal of 2020-2021 reinsurance agreements has witnessed notable stringency as a large number of insurers in the region have faced great difficulties in renewing their treaties whereas some were forced to accept stiff terms due to the lack of options or alternatives. Abu Dhabi/January 27-2021: The Central Bank of the UAE (CBUAE) on Wednesday announced the commencement of operational procedures aimed at assuming the supervisory and regulatory responsibility of the insurance sector in the UAE. Circular No. The IA previously imposed new requirements that demand a minimum level of rating for reinsurance companies. (3) of 2020 on Precautionary and Preventive Measures to Maintain Public Safety, Health and Prevent Spread of Coronavirus (COVID-19) ("COVID-19 Circular"), addressed to all insurance companies and insurance-related professions operating in the UAE, provides guidance from the Insurance Authority on precautionary and preventive measures to maintain public health in the … We have offices in Dubai, UAE, Saudi Arabia, Oman, Lebanon and Iraq. By using our services, you agree to our use of cookies, By purchasing this item, you are transacting with Google Payments and agreeing to the Google Payments, Ministry of Foreign Affairs & International Cooperation, smart efficient & secure app providing insurance study, licensing & registration, The application of the Insurance Authority to encourage reading. (25) of 2020 whereby the merger of the Insurance Authority into the Central Bank was decided. “Consequently, this has created stress on the reinsurance capacity in the UAE (re)insurance market.”. Blast from the past. The time is quite right as some international reinsurers are reluctant to work in the region or prefer to work under tough terms/conditions”. Tel: (65) 6224 5583, Fax: (65) 6224 1091 |, Central Bank starts to take over from Insurance Authority, CII lauds Insurance Authority's proposed regulation consolidating insurance broking rules, Insurance authority sets out new regulation for insurance broking, Insurance Authority demands compliance with motor pricing rules, Swiss Re and Democrance to help insurers digitise, Motor business contributes less than 50% of total non-life insurance premiums, Life insurers double premium growth rate y-o-y in Jan 2021, Medical insurers reveal comprehensive short term health insurance loss ratio, Middle Then be the first to post a comment. On 14 November 2016, the UAE Insurance Authority issued Circular 33 (which would later become known as Circular 12 and finally BOD49), with our Future Advisory Forum taking place very shortly afterwards. “Such requirements are to place more pressure on the terms and prices of reinsurance at this stage. Insurance Authority regulates and supervises the insurance sector in the UAE in accordance with Federal Law No. “This has been reflected on the policyholders for insurance contracts renewed on 1 January, especially in the property insurance field where larger capacity is required. Nearby government services. There are no comments submitted yet. The UAE Insurance Authority (IA) has published a draft regulation consolidating rules on insurance broking and online broking transactions. The UAE has taken a decision to merge the Insurance Authority with the central bank, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE … else Another factor resulting in tighter reinsurance terms is the deterioration in investment returns due to the decline in interest rates which have fallen to unprecedented low levels (currently below 1%), Mr Elamin noted. Therefore, the increase in reinsurance prices is a burden on business owners and accumulates pressures on costs.”, Mr Elamin hailed the action the IA has taken to freeze the rating requirements on the reinsurance business. Submit Dispute Information. CBUAE commences merger of Insurance Authority. Receive Free Newsletters From Asia Insurance Review, Ins Communications Pte Ltd., 103A Amoy Street, Singapore 069923. The decision to merge the Insurance Authority into the UAE Central Bank is part of a bigger initiative to transform the CBUAE into one of the top 10 central banks globally. Reasons behind hardening reinsurance market. Mr Omer Elamin, president of Orient Insurance Group, referred to four factors that have resulted in tighter reinsurance terms and hikes in prices in the renewal season which begins in January. The large losses global reinsurance companies have incurred as a result of the COVID-19 pandemic, which some reports said are expected to exceed a record level of $200bn, and the losses resulting from the Beirut Port explosion last August, are estimated to have reached hundreds of millions of dollars, are rendering reinsurers stricter in accepting and renewing insurance contracts in the region, he added. The move comes as part of the government’s directives to coordinate and cooperate with the private sector and is in line with measures the IA has been taking to mitigate the economic impact caused by the COVID-19 pandemic. 202 Location: Office Number- 119, 1st Floor, Al Nasr Plaza - Commercial Building, Near Oud Metha Metro Statio, Dubai - Post Box 96695 Celebrating Asian culture, history, and stories, Explore audiobooks from Asian storytellers, Smart Insurance Disputes Resolution System (SIDRS), Cookies help us deliver our services. It was the Decretal Federal Law No (25) of 2020 that decided the merger of Insurance Authority into the Central Bank. Mr Elamin expected that reinsurance companies would continue to tighten terms and prices for at least the next three years. The IA’s statement reportedly said that considering the circumstances that the reinsurance business is facing globally, it has been decided to allow the exemption for a period of one year, provided that it shall be applied as of the date of issuance of the statement. The Central Bank of the UAE (CBUAE) has announced the commencement of operational procedures aimed at assuming the supervisory and regulatory responsibility of the insurance sector pursuant to Decretal Federal Law No. 6 of 2007. The Official Portal for Insurance Authority UAE, Provides variuos services on Insurance Domain Many companies provide Islamic insurance (Takaful) services. He noted that some reinsurance providers have become stricter in accepting business in the region, while several regional players have ceased operations because of problems they faced. The UAE Insurance Authority ('IA') has now promulgated and issued the 'Cabinet Resolution No 7 of 2019 Concerning the Administrative Fines Imposed by the Insurance Authority' ('the Resolution'), which was issued by His Highness Mohammed Bin Rashid Al Makhtoum, the Prime Minister of UAE on 6 January 2019, followed by its publication on the IA's website earlier this month. It expires at the end of December each year. Insurance Authority UAE. The Dubai Health Authority had granted licenses to 50 of the UAE's 62 insurance companies, 23 of the 25 third-party administrators (TPAs) licensed by the UAE Insurance Authority, and 103 out of 201 of the brokers or intermediaries that operate in the market. East Insurance Awards, Asia Insurance 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. Authorized by UAE Insurance Authority , Broking Licence No. 6 of 2007 with a legal personality and financial and administrative independence. Mr Elamin added that the current high prices guarantee generating reasonable profits for national reinsurers in the light of the need for such companies in the region. “with a forward-looking vision, specifically given that the banking sector is a key pillar to the UAE economy.” Sheikh Mansour Bin Zayed Al Nahyan also said that this decision to merge Central Bank of the United Arab Emirates with Insurance Authority is an initiative to convert CBUAE in to one of the top ten central banks globally. Description Insurance Complaints and Licensing System The Insurance Authority (IA) is the government entity in United Arab Emirates responsible for regulating and monitoring the Insurance Sector while protecting the rights of the insured. if (document.URL.indexOf("meinsurancereview") > -1) document.write("