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

1
The Direction of Insurance Regulation in the UAE
and the Anticipated Challenges

• Irshied Tayeb
• Head of Insurance Reinsurance

2
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.

3
Current and Future Regulatory challenges in the
MENA UAE Focus (Contd)

• 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).

4
Current and Future Regulatory challenges in the
MENA UAE Focus (Contd)

• 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.

5
THANK YOU

• Any Questions?