The Insurance Authority has launched a stimulus package of amendments to the legislation in force, decisions and regulatory circulars to support the insurance sector and ensure the continued performance of insurance-related companies and professions in order to face the repercussions and challenges in the world markets as a result of the spread of the emerging Corona virus "Covid 19".
Engineer Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Board of Directors of the Insurance Authority, said that the launch of this incentive package of laws and regulatory decisions comes in line with government directives and in support of initiatives to stimulate economic growth and support insurance companies and small and medium-sized companies from insurance brokerage and life insurance companies and family symbiotic insurance companies and companies Managing health insurance claims and within the framework of the Insurance Authority’s response to facilitate business practices and reduce their costs, and to assist companies to comply in providing technical financial reports under the current circumstances.
He indicated that the incentive package of organizational amendments, decisions and circulars included the issuance of a decision to amend some articles of the insurance mediation system No. (15) for the year 2013, which includes reducing the amount of the bank guarantee letter by a value of (1) million dirhams, equivalent to 33% of the value of the current guarantee, so that the new guarantee has become required ( 2) One million dirhams, instead of (3) million dirhams previously, to practice insurance brokerage activity through a licensed company inside the country. The value of the bank guarantee of the foreign company branch or branch of a company established in a financial free zone in the country was reduced by (1) million dirhams to become (4) million dirhams instead of (5) million previously.
He added that insurance brokerage firms were given an additional period to submit annual and interim financial statements and reports to facilitate these companies in performing their duties reasonably during this stage.
He stressed that the period granted for the enforcement of the provisions of the Board of Directors' Resolution No. (49) of 2019 regarding life and family symbiotic insurance instructions has been extended for an additional period (six months) starting from April 16, 2020, as well as amending the licensing instructions for health insurance claims management companies Organizing and monitoring its activities and giving it an additional period to submit the annual and quarterly financial statements, in addition to giving insurance companies operating in the country an additional period to submit some specific technical reports.
In turn, Ibrahim Obaid Al-Zaabi, Director General of the Insurance Authority, said that the launch of the decision package stems from the authority’s endeavor and its eagerness to translate the vision of wise leadership and keep pace with government directives in order to facilitate business and stimulate growth and help SMEs to perform their tasks smoothly during this stage.
He emphasized the authority’s efforts to support insurance-related companies and professions at this stage to ensure the smooth provision of insurance coverage to the public, especially as the package of decisions included financial and regulatory aspects, including allowing bank guarantee requirements for intermediaries to be reduced by 1 million dirhams within certain controls, and the submission deadlines were extended The annual financial reports and data on the brokers ’work so that they become four months from the end of the fiscal year and extend the period for submitting these reports and quarterly statements to become (45) days from the end of the quarterly period.
Al-Zaabi also clarified that the new amendments aim to provide flexibility and facilities in the financial obligations related to the bank guarantee of companies operating in the insurance brokerage profession and the development of the performance of insurance brokers in order to develop the performance system in the local insurance market and to improve the businesses of companies and workers in the profession of insurance brokerage and improve the broker's work environment so as to ensure The presence of qualified mediators and the protection of the interests of all relevant parties.
According to the new amendments to the insurance mediation system, a new item bearing the number (6) has been added to Article No. (11) stating that the insurance mediator may apply to the authority in order to reduce the amount of the letter of guarantee issued by one of the banks operating in the country, referred to in Item (4) of this Article, with an amount of (1) million dirhams for the guarantee of the company established in the country or the branch of the company established in the company's financial free zone provided that some requirements are met.
The new clause specifies the commitment of the insurance broker to submit audited annual financial statements and reports and quarterly financial statements and reports within the dates specified in the regulations and instructions, and that the net ownership rights contained in the last annual audited financial statements submitted to the authority are not less than one hundred percent of the minimum capital required, in addition to The absence of executive judicial rulings submitted to the commission against the mediator makes the amount of the guarantee less than the amount that must be retained after reducing the amount of one million dirhams specified in Article Two.
The amendments included granting insurance brokerage companies an additional period to submit financial statements by replacing paragraphs (a) and (b) of item (12) of Article (14) with two new paragraphs on the insurance broker’s obligations to the authority. The first new paragraph states that the insurance broker By providing the authority with a quarterly report signed by the chairman of the board of directors, the general manager or the chief executive officer and an auditor from the external auditor, that includes all insurance brokerage and related accounts, within a period not exceeding (45) days after the end of the quarterly period, while the new second paragraph states that The insurance broker provides the authority with insurance An annual annual signed by the board of directors or the board of directors that includes all insurance brokerage activities that he practiced during the year and the final annual financial statements audited and attached to the external auditor's report during a period of (4) months from the end of the fiscal year, as well as providing the authority with a copy of insurance brokerage agreements that It was contracted with companies during the fiscal year.
The incentive package also included the extension of the period granted for the enforcement of the provisions of the Insurance Authority Board of Directors Decision No. (49) of 2019 regarding life and family Takaful insurance for an additional period (six months), starting from the date of 4/16/2020.
The incentive package included amending some provisions of the Insurance Authority Board of Directors Decision No. (9) of 2011 regarding licensing instructions for health insurance claims management companies and organizing and monitoring their actions and its amendments, by amending Article (13) of the provisions of the decision by replacing Item No. (2) with a text A new stipulates that the health insurance claims management companies shall be provided to the authority with an annual report signed by the board of directors or the board of directors that includes all the company's activities during the year and the annual audited final financial statements attached to the external auditor's report, within a period of four months from the end of the fiscal year.
The amendments also included extending the financial statements delivery periods to the brokerage companies and managing health insurance claims by adding a new item to the same article (13) bearing the number (4) and it provides for providing the health insurance claims management companies to the authority with a quarterly report on the company and the related accounts signed by the president The board of directors, general manager or CEO, within a period not exceeding (45) days after the end of the quarterly period.
The incentive package also included amending the delivery dates of some reports for all insurance companies operating in the United Arab Emirates for the year 2020.
According to the circular issued in this regard to insurance companies, the authority decided to extend the delivery dates of some of the required regulatory reports within the framework of facilitating the companies and ensuring the flow of their work at this stage, according to the attached schedule.