Abu Dhabi • Beirut • Dubai • Erbil • Muscat • Ras Al Khaimah • Riyadh • Sharjah

The Direction of Insurance Regulation in the UAE and the Anticipated Challenges

Irshied TayebHead of Insurance & Reinsurance

Current and Future Regulatory challenges in the MENA: UAE Focus

• Regulatory framework currently imbalance between various regulatory function. In specific legislative and supervisory.

• Overcome the regulatory structure at the outset: twin peak, interactive, ministerial and independent.

• Regulatory reputation reformation to balance the overall authority and responsibility of the industry.

• Industry development in line with the regulatory reformation to line up to achieve optimal level.

• Industry practice to line up with international practice. Reinsurance dependency, risk averse, authority/responsibility, distribution, investment strategy.

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Current and Future Regulatory challenges in the MENA: UAE Focus (Cont’d)

• ERM as a way to address some of the technical challenges alongside the specific and general activities especially the highly scaled ones.

• Synergetic activities between regional regulatory bodies, taking USA model as an analogy where 50 regulatory authorities and coordination association without active authority NAIC (National Association of Insurance Commissioner).

• International regulatory enhancement and regional and local response Basel II, solvency 2 and 3 and own regulatory.

• Establish non existent function that is handled at reinsurance level to bring back in a viable way to cedent, main example risk modeling and ROE (commercial capital calculation).

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Current and Future Regulatory challenges in the MENA: UAE Focus (Cont’d)

• Conversion of static into risk base approach while regulating and developing the insurance industry.

• Develop regulatory requirement to respond to highly growing elements that is rapidly developing such alternative distribution (mainly bancassurance).

• Respond to alternative risk transfer method and its’ lack of adaptation in our region, especially sidecard and SLI.

• Encourage M&A in the region for commercial strategic objective including runoff, hedge fund, economy of scale, market entry and capital adequacy.

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