The Central Bank of the UAE (CBUAE) has started the process of taking over the supervision and regulation of the insurance sector in the country.
This process follows the Decretal Federal Law No. (25) of 2020 to merge the Insurance Authority into the Central Bank.
According to the statement, the central bank’s supervisory duties include controlling the financial solvency of insurance firms, ensuring that businesses in the sector behave ethically, and securing the interests of the insured. It will also “continue to facilitate the advancements of new technologies across all elements of the UAE’s financial sector.”
Sheikh Mansour Bin Zayed, Deputy Prime Minister, Minister of Presidential Affairs, and chairman of the Central Bank of the UAE 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.”
“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, characterized 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.”
Recently, the CBUAE has set up several committees and working groups headed by its governor to complete the merger process. Following the completion, CBUAE in collaboration with relevant international authorities will ensure the implementation of best practices and standards in executing its responsibility to supervise and regulate the insurance sector.