Financial instructions for insurance companies establish price rules for products

03-05-2019 Media in\ Abu Dhabi
Ibrahim Obaid Al Zaabi, Director General of the Insurance Authority said that the results of applying the provisions of the financial instructions for insurance companies and Takaful insurance companies since its entry into force in early 2018 are going well.
He explained in a briefing to the Authority in this regard that the Insurance Authority issued the financial instructions in 2014 with a view to establishing the financial and technical regulatory rules for insurance companies. It entered into full force at the beginning of last year after a three-year period of reconciliation which was granted to enable companies to comply with the provisions of the instructions, especially investment limits and capital adequacy requirements.
He pointed out that these instructions are a qualitative leap in the regulation of the UAE insurance market because it is characterized by comprehensiveness in dealing with all financial and technical aspects of the funds and investments of insurance companies and the methodology of measuring the solvency of these companies in accordance with the best international practices.
He explained that through the Insurance Commission’s follow-up to the results of the insurance companies, and in order to maximize the benefit of the financial instructions and achieve its objectives, the Authority issued an amendment regarding the application of the investment limits contained in the financial instructions of the insurance companies and takaful companies, in accordance with the Board of Directors Decision No. 22 of 2017, The full implementation of the instructions will achieve a balance in the insurance market and increase the solvency of insurance companies and withstand any challenges that may face in the future.
The Director General of the Insurance Authority that the financial instructions are characterized by many advantages and positive effects that will be reflected on all beneficiaries of the insurance market in the state and begin to review the policies and financial and technical procedures followed by insurance companies to raise the efficiency of the performance of employees in insurance companies and the rights of the campaign To increase the competitiveness of the UAE insurance market and to contribute to raising the credit ratings of companies operating in this sector.