The Insurance Authority (IA) has issued new financial regulations for both conventional insurance and Takaful companies. These regulations were designed to improve the overall regulatory framework for the insurance business in the UAE.
This year, the regulations were signed into effect, setting out new rules for investment strategies, solvency capital requirements, setting of technical provisions, record-keeping and accounting policies. The regulations include a transition period of up to three years for some parts of the rules.
The new regulations released by the IA are a major step forward in developing risk-based regulation of the insurance industry in the UAE.
In this piece, we discuss some of the key components of the new regulations and what companies should expect as a result.