ALAM AL TAMEEN - Towards the Next 50
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ALAM AL TAMEEN
Towards the Next 50
Towards the next 50
H. H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the
UAE and Ruler of Dubai, and H. H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of
Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, announced 2020
to be the year of preparation for the next 50 years.
Themed "2020: Towards the next 50", the year 2020 will witness the launch of the biggest
national strategy to prepare the country for the coming 50 years and for its Golden Jubilee
celebrations in 2021. Federal and local government’s efforts will be coordinated and individ-
uals from all segments of the society will be included to make giants leaps in the areas of
economy, education, infrastructure, health, and media.
Two committees have been formed to achieve the goals of '2020: Towards the next 50'; the
first committee is tasked with building a comprehensive development plan for the next 50
years and the second committee is to oversee the Golden Jubilee celebrations.
So that the celebrations will be exceptional and chronicle this stage of the UAE history.
ALAM AL TAMEEN
An annual magazine prepared by the Strategic CONTENTS
Communication Department of the Insurance Authority
and concerned with the news and topics of the
insurance sector.
General Supervisor:
H.E. Ebrahim Alzaabi MAIN TOPIC
Editor-in-Chief: The Insurance Authority hosts the Annual Meetings and the 26th
Kholoud Al Darmaki Annual Conference of the International Association of Insurance
Supervisors (IAIS)
Follow up and Coordination:
Omayma Ali
Ohood Al Neaimi
Kholoud Al Marzouqi
MAGAZINE TOPIC
Prepared and Edited by: The Insurance Authority celebrates the 48th
Faisal Ahmed National Day of the United Arab Emirates
Mohammed Hassan Abu Taleb
16
Proofreading by:
Gehan Rezk
Photography and design: MAGAZINE REPORT
Mohammed Al Marzouki
Christopher N. Billedo The Insurance Authority issued the annual report
on the UAE's Insurance Sector Activity in 2018
Published material does not necessarily reflect the opinion
22
of the Insurance Authority.
Topics classified subject to technical considerations.
REPORTS
Contacts:
United Arab Emirates The achievements of the Insurance Authority improve
Abu Dhabi, P.O. 113332 the performance of the insurance sector in the country.
Tel.: +971 2 4990 111
The 24th World Energy Conference - Abu Dhabi 2019
Dubai
Tel.: +971 4 2368 111
www.ia.gov.ae
info@ia.go.ae
Unified call center to serve customers and the public:
80042823
CONTENTS CONTENTS
32 56
56
AUTHORITY ACTIVITIES AGREEMENTS
Launch of a "digital Supervisory platform" to enhance the The Insurance Authority signs a memorandum of understanding
competitiveness of the sector in the country with the Financial Regulatory Authority of Egypt
Insurance Dispute Resolution Committees start The Insurance Authority signs a training agreement with the
60
their business of receiving complaints and resolving them Chartered Insurance Institute (CII)
The Insurance Authority is working to implement a technological
INTERVIEW
system in the insurance business to reduce traffic accidents
The Insurance Authority launches a training initiative for
42
government financial bodies and Arab bodies in Kholoud Al Darmaki: Government work is an "honor"
"combating financial crimes" and being number one is a motive for success
62
62
EMIRATIZATION
Innovative Emiratization Decisions pave the way to work
SOCIAL RESPONSIBILITY
in the Insurance Sector
Al-Zaabi: The Insurance Authority is developing proposals to
46
develop the Emiratization strategy The Insurance Authority gets "ISO" for applying international
standards in social responsibility
64
INNOVATION
The Authority's Innovation Support Initiatives 2019
TECHNOLOGY
48
The digital world is a reality and companies must realize
its benefits
66
66
LAWS AND REGULATIONS
ADMINISTRATION
Significant Legislation Regulating Insurance Sector - Issued in 2019
The Insurance Authority issues life and family Takaful insurance
regulations Inspirational quotes for success
Regulatory rules issued to convert the insurance market into digital
Rules of practicing the profession and marketing policies through banks
Main Topic
The Insurance Authority hosts
the Annual Meetings and the 26th The Insurance Authority hosted the annual meet-
Annual Conference of the ings during the period from 11-13 November 2019,
and the 26th annual conference of the International
International Association of Insurance Association of Insurance Supervisors (IAIS) during
the period from 14-15 November 2019 under the
Supervisors (IAIS) slogan "Supervision in a Digital Era" in Abu Dhabi,
Jumeirah Hotel. This conference witnessed the
attendance of IAIS’ members, which consist of 200
supervisory and control authority from 140
countries, in addition to local, regional and
international companies, and insurance-related
profession, experts and concerned professional
worldwide.
United Arab Emirates is working, based on the
guidance of its wise leadership, to build a diversified
global competitive economy based on innovation
and knowledge through leading national competen-
cies, His Excellency/ Eng. Sultan bin Saeed Al
Mansoori, Minister of Economy and Chairman of
the Insurance Authority, said in a speech during the
opening of the conference.
Al Mansoori stressed that United Arab Emirates
enjoys leading economic and trading policies based
on continuing diversification, economic openness
and effective linkage with global markets, and
adopting modern trends in development, of which
artificial intelligence is one of its main drivers.
United Arab Emirates also continues its efforts in
developing business and investment environment
and stimulating technology, research, development,
intellectual property and encouraging entrepreneur-
ALAM AL TAMEEN - THIRD ISSUE 07
Main Topic Main Topic
Al Mansoori added that United Arab Emirates is characterized by a stable investment, economic and political Al Mansoori emphasized that these developments in artificial intelligence, financial technology and innova-
environment, and is able to continue economic growth. United Arab Emirates has achieved remarkable tion have positively reflected on insurance sector in the state, and contributed to creating great opportunities
success in increasing the contribution of non-oil sectors to the gross domestic product by more than 70.5%, for insurance companies in the state to provide their clients with appropriate services and coverage according
which makes the national economy one of the region's most diversified and growing economies. to their needs. Insurance companies have used technology in service fields, which makes the insurance sector
to be one of the most likely sectors for growth in adopting modern technology in the coming years.
Al Mansoori stressed that United Arab Emirates has ranked first among Arab countries through six consecu-
tive years in ease of business practices, and maintained its lead at the regional level in foreign direct invest- His Excellency the Minister stated that the insurance sector in United Arab Emirates receives great impor-
ment inflows, which amounted to $ 10.4 billion in 2018. In addition, United Arab Emirates continues its tance in light of the directions and guidance of the wise leadership directives due its vital role in protecting
positive growth despite various regional and international economic challenges, where the International individuals and property, in terms of ensuring the fulfillment of the obligations of insurance policyholders.
Monetary Fund estimates that UAE real GDP will grow by 2.8% at the end of 2019, and is estimated to reach The gross written premiums reached a total amount of twelve (12) billion dollars in 2018, with paid compensa-
3.3% in 2020. tion amounting to eight (8) billion dollars. In addition, it has an investment role in collecting, developing and
optimizing national savings with a total investment of (17.3) billion dollars, in line with the requirements of
Al Mansoori explained that the pace of technological developments in the world is accelerating rapidly, with that vital industry to support sustainable economic and social development.
which investments in financial technology and artificial intelligence technologies increase. Accordingly, the
world will change a lot during the coming years, and those who are able to technological innovation will be Al Mansoori explained the selection of United Arab Emirates confirms its economic position and consoli-
the most influential in shaping the features of the future. dates the pillars of development, as UAE has become a major global center in the insurance industry.
Insurance sector is considered one of the most active economic sectors in the state, and has maintained the
His Excellency/ Minister of Economy and Chairman of the Insurance Authority Board of Directors also empha- first rank in the Middle East and North Africa. It further increased one place globally, reaching 37th in 2018 in
sized that United Arab Emirates has realized the importance of investing in artificial intelligence technologies terms of gross written premiums, which contributed to the growth of global competitiveness indicators for
early, as it is an important tributary of the national efforts aiming to build a competitive based-knowledge this sector.
economy with high productivity. United Arab Emirates aimed to establish an economy based on innovation, He said that the insurance sector in United Arab Emirates has great growth opportunities, as it is expected to
scientific research and recent technology, in accordance with the determinants of UAE vision 2021. maintain high growth rates in the coming years, and continue to achieve its effective role for supporting
economic development and driving the growth of the national economy.
Al Mansoori pointed out that the United Arab Emirates has launched a 2031 strategy for artificial intelligence
and established an independent ministry for artificial intelligence in 2017. He emphasized the efforts made by the Insurance Authority in supporting and stimulating development
opportunities of this sector significantly. The Authority continues its effort to issue the laws that promote
These leading steps are based on the strong foundations laid by the state to strengthen the innovation system, development and innovation, specially in Fintech and Insurtech. The Authority recently issued laws regarding
for which the state has launched a national strategy with a view to laying the foundations for the future, Al the Supervisory Rules for the Experimental Enviroment of Financial Tenhnology "Sandbox" and e-insurance
Mansoori said. United Arab Emirates aims to prepare a generation of young national talents, capabilities and Regulations according to the best practices applied worldwide. Such laws are expected to drive sustainable
entrepreneurs, and providing them with knowledge in advanced science and technology and related skills, he development in the insurance sector and help attract new investments for emerging companies in the finan-
added. cial technology field.
08 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 09
Main Topic Main Topic
The authority also recently launched the next generation of insurance supervision by setting up a digital supervisory
platform using artificial intelligence technologies. It works to enhance the innovation environment in the sector by
establishing a system of innovation centers in all companies operating in the insurance sector. Chief Innovation
Officers have been appointed in the insurance companies to support development and innovation in the insurance
sector.
Al Mansoori stressed the importance of holding the annual conference of the International Association of Insurance
Supervisors in Abu Dhabi in light of the qualitative transformation witnessed by the insurance industry worldwide in
all fields and change resulted from the digital developments and financial technology regarding the methods of provid-
ing insurance services. Accordingly, it will establish a greater role in the future of the insurance industry.
The conference focuses over two days on five main axes related to building of capabilities through digital models,
enhancing the sustainability of technological development and stability in insurance markets worldwide, continuing
the path of innovation and large database systems. It also focuses on the digital financial inclusion due to the great
importance and the impact of technology on the market structure.
The conference also coincides with the Silver Jubilee and the twenty-five years since the establishment of the Interna-
tional Association of Insurance Supervisors. The conference further combines all supervision agencies of insurance
and pioneers of the insurance industry in the world aiming to apply the best global practices in the insurance sector.
The conference also referred to the vital role played by the International Association of Insurance Supervisors in
exchanging knowledge and experiences between supervisory organizations and bodies supervise the insurance
business, insurance companies, experts and specialists from all over the world, in order to benefit from the successful
experiences to achieve the best results. The conference further aims to enhance the growth opportunities of the global
insurance industry in the future.
United Arab Emirates represented by the Insurance Authority is considered an active member of the International
Association of Insurance Supervisors since 2010. The Insurance premiums of the member countries of (IAIS) estimate
about (97%) of the total premiums worldwide.
It is worth noting that the International Association of Insurance Supervisors has selected in its meeting in Abu Dhabi
HE/ Ebrahim Obaid Al Zaabi, the Director General of the Insurance Authority, as a member of its Supreme Executive
Committee representing the Middle East and North Africa for the third consecutive session.
10 ALAM AL TAMEEN - THIRD ISSUE
Magazine Topic
On Wednesday the Insurance Authority organized a
special ceremony to mark the 48th National Day of
the United Arab Emirates at the Authority's
headquarters in Abu Dhabi, in the presence of
Ebrahim Al Zaabi, Director General of the Authori-
ty, officials from government and local agencies,
partners of the Authority and directors of compa-
nies Insurance and insurance-related professions,
and a large public of the Authority's customers and
partners.
The ceremony, which began with the national
anthem of the United Arab Emirates, included the
presentation of heritage, poetry, cultural and
artistic performances of students from State
schools, students of the people of determination,
and art performances by a group of school students,
the organization of popular tents and heritage
competitions that embody the spirit of the Union. It
narrates the vision of the late founder of the State,
Sheikh Zayed bin Sultan Al Nahyan, and the found-
ing fathers of the UAE rulers, may Allah have mercy
on their souls, in building the nation, the citizen and
The Insurance Authority Celebrates the march of progress and prosperity witnessed by
the UAE in various fields under the wise leadership
the 48th National Day of the of the State.
United Arab Emirates The celebration of this precious national occasion
comes in light of the great achievements achieved
by the UAE in various fields and industries. This
including the insurance sector, which has witnessed
outstanding achievements and results, that contrib-
Achievements of Insurance Authority uted to the provision of economic and social protec-
tion, supporting economic growth in the UAE and
placed the UAE as global center in promoting State economic diversification policy.
the insurance industry
ALAM AL TAMEEN - THIRD ISSUE 13
Magazine Topic Magazine Topic
The insurance Authority's ongoing efforts to make the UAE market a major global insurance hub, while
contributing to the development of this vital sector of the national economy, supporting and stimulating
the growth and motivation of the UAE's insurance sector.
The UAE's insurance sector is one of the most active sectors, due to its vital role in serving the national
economy, which was reflected in the growth of its contribution to GDP, with the contribution of gross
domestic product (GDP) in 2018 to (3) Growth is expected to continue in 2019 and the coming years,
matching this year's GDP growth rate.
Gross premiums tripled after the establishment of the Insurance Authority and during 2007-2018, it
achieved rise from AED 14.5 billion in 2007 to AED 43.7 billion in 2018 in total. The share of national
companies in the gross written premiums in 2018 (63%), with a value of AED 27.683 billion, while the share
of foreign companies (37%) and a value of AED 16.036 billion.
The amount of funds invested in the sector has nearly tripled since the establishment of the Authority, and
during 2007-2018, it witnessed growth from AED 23 billion in 2007 to AED 63.6 million in 2018, underscor-
ing the importance of this sector and its vital role in the national economy.
At the conclusion of the ceremony, the Insurance Authority's awards for excellence in the insurance sector
and the honoring of the strategic supplier partners of the Authority were distributed.
14 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 15
Magazine Report
His Excellency Eng. Sultan Bin Said Al Mansoori,
Minister of Economy and Chairman of the Insur-
ance Authority’s Board of Directors said. “The
opportunities for improving the size of the insur-
ance sector in the United Arab Emirates are great”
His Excellency stressed in his speech at the intro-
43.7 billion dirhams the size of the duction to the annual report of the insurance
written premiums, and 63.6 billion sector activity in the United Arab Emirates for the
dirhams the size of the investments. year 2018, which was issued by the Insurance
Authority, that the UAE insurance market is
expected to witness a significant increase in the
coming years due to the sustainable economic
4% increase in premiums of development.
Takaful insurance companies to
4.4 billion dirhams. His Excellency pointed out that the great poten-
tial and capabilities of the United Arab Emirates
and the states of the Gulf Cooperation Council,
help the insurance sector to play a major and
The UAE ranks among the total insurance leading role in the Arab region.
written premiums increased
globally to the rank (37) in 2018. His Excellency indicated that the size of written
premiums for all insurance classes amounted to
The Insurance Authority issued the 43.7 billion dirhams in 2018.
annual report on the UAE's The UAE ranking in the prevalence of
insurance globally improved to the rank
His Excellency added: The amount of money
invested in this field confirms the importance of
Insurance Sector Activity in 2018 (45) in 2018. this sector and its vital role for the national econo-
my, which reached at the end of 2018 to (63.6)
billion dirhams, (38%) of which is concentrated in
stocks and bonds and (28%) in deposits. In
Al Mansoori: Great opportunities for growth of addition, the shareholders ’equity in the national
insurance companies reached up to (20.5) billion
insurance sector in UAE and expectations for
dirhams.
increasing the market size in the coming years
ALAM AL TAMEEN - THIRD ISSUE 17Magazine Report Magazine Report
His Excellency the Minister of Economy and Chairman of the Insurance Authority’s Board of Directors said He also highlighted the growing role of Takaful insurance sector in the insurance industry in United Arab
that the Authority worked during 2018 to complete the issuance of laws that regulate the sector, as part Emirates, as the gross written premiums by all Takaful insurance companies operating in the state reached
of its efforts and its keenness to strengthen the legislative base for regulating the UAE insurance sector. The to (4.4) billion dirhams in 2018, with an increase of 4% than 2017. Meanwhile, the percentage of written
Authority also aims to develop the performance of the local insurance market and the entities operating premiums by all Takaful insurance companies reached to (16%) of the gross written premiums by the
therein based on solid legal, technical and financial grounds. It further aims to increase the sector’s national traditional insurance companies in 2018.
competitiveness at the regional and international levels, in accordance with the best practices worldwide.
In turn, His Excellency Ebrahim Obaid Al Zaabi, the Director General of the Insurance Authority said that The annual report of the insurance sector activity in the UAE during 2018 monitors the aspects related to
the continuous efforts made by the Insurance Authority support the growth opportunities of the insur- the insurance market in the state with more disclosure and transparency. This reports highlights the most
ance sector in UAE and stimulate it greatly. important achievements of this important sector and the development achieved during 2018, which
makes it an important reference for researchers and those interested in insurance affairs inside and outside
He affirmed the continuation of issuing laws that strengthen the legislative base for regulating the insur- UAE.
ance sector and developing the performance of the local insurance market and operating entities based
on solid legal, technical and financial grounds, and increase the sector's competitiveness at the regional
Advanced Position Globally:
and international levels, in accordance with the best international practices.
Per capita insurance premiums at the end of 2018 amounted to (4,570) dirhams, compared to (4,753)
Al Zaabi added that the Authority is currently working on several projects aimed at enhancing the role of
dirhams in 2017, and to (2,346) dirhams in 2007.
the insurance sector and its development according to the supervision technology mechanisms, including
moving to the next generation of supervision over the insurance sector through the preparation of the
According to the latest reports issued by Swiss Re (Sigma), the ranking of UAE globally over the past five
digital supervisory platform, and electronic linking with the insurance companies and insurance-related
years (2013-2018) has improved significantly. The ranking of UAE in terms of total insurance written premi-
professions
ums worldwide rose from (44) in 2013 to (37) in 2018, while its ranking in terms of insurance penetration
(gross written premiums as a percentage of GDP) improved from (64) in 2013 to (45) in 2018.
H.E. also confirmed that United Arab Emirates has become a major global center in the insurance field,
noting that the insurance sector is considered one of the most active economic sectors in the state.
Ranking of United Arab Emirates in
Al Zaabi pointed out that the UAE market topped the markets of the Middle East and North Africa terms of total insurance gross written
(MENA) in terms of written premiums during the previous 10 years. In addition, global reports refer to the premiums worldwide
notable improvement in the state’s ranking globally over the past five years in terms of gross written insur- Ranking of United Arab Emirates in
terms of insurance penetration (gross
ance premiums reaching to the rank (36) in 2017 compared to the rank (44) in 2013. Moreover, the state’s
written premiums as a percentage
ranking in terms of the insurance penetration reached to the rank (42) in 2017 compared to the rank (64) of GDP)
in 2013.
18 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 19Magazine Report Magazine Report
Size of Insurance Market Activity: The portfolios of investment companies are distinguished by the diversification and distribution of risks in
the various investment categories, in accordance with the financial instructions of the insurance compa-
Gross written premiums during the year 2018 reached a total of (43.7) billion dirhams, as the share of nies issued by the Authority, which regulated all provisions related to the rules, bases and limits of invest-
national companies of gross written premiums reached (63%) with a value of (27.683) billion dirhams, ments.
while the share of foreign companies reached (37%) with a value of (16.036) billion dirhams.
The percentage of investment in stocks and bonds reached (38%), followed by investment in cash and
The gross written premiums in all classes of property and liability insurance reached (15.1) billion dirhams,
deposits by (28%), and then investment in other invested assets by (18%).
and the share of the national companies thereof amounted to (11.3) billion dirhams with a percentage of
(74.6%), and the share of foreign companies thereof amounted to (3.8) billion dirhams with a percentage
Number of Companies:
of (25.4%).
Increasing Takaful Insurance Premiums: The number of insurance companies operating in the country reached to (62) companies. Including (35)
national insurance companies and (27) foreign insurance companies. The number of companies carrying
The Insurance Authority pays special attention to the Takaful insurance sector by enhancing its vital role out all classes of insurance (persons, operations of fund formation, property, and liability) reached (15)
in ensuring persons, property and liabilities, alongside the traditional insurance sector. national companies and (2) foreign companies. The number of companies carrying out property insur-
ance and liability insurance reached only (15) national companies and (17) foreign companies, and the
The indicators refer to the growing role of the Takaful sector in the insurance industry in the country, as number of insurance companies carrying out personal and operations of fund formation reached (3)
the gross written premiums by all Takaful insurance companies operating in the state in 2018 amounted national companies and (9) foreign companies. Meanwhile, the number of companies carrying out export
to (4.4) billion dirhams, compared to (4.2) billion dirhams in 2017, with an increase of (170) million credit insurance reached only one national company, and the number of Takaful insurance companies
dirhams, representing (4%). reached (12) national companies.
The percentage of gross written premiums by all Takaful insurance companies operating in the state in The number of insurance brokers reached (163), number of insurance agents reached (20), number of
2018 compared to the gross written premium by the national traditional insurance companies reached insurance consultants reached (25) consultants, number of detection and damage assessment experts
(16%). Meanwhile the percentage of the gross written premiums by all Takaful insurance companies
reached (62) experts, number of actuaries reached (48) actuaries, and number of health insurance claims
operating in the state in 2018 compared to the gross written premiums by all insurance companies operat-
management companies reached (26) companies.
ing in the sector reached 10.1%.
Investments and Investment Tools:
The size of funds invested in the sector during the year 2018 reached (63.6) billion dirhams, compared to
(60.7) billion dirhams in 2017, with an increase of (2.9) billion dirhams with a percentage of (5%).
20 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 21ĴƸƸƸƸŻijĔƸƸƸƸŝƸƸĜ Reports
The Insurance Authority has fulfilled many
achievements that advance the insurance sector
in UAE at various levels and aspects. Legislative
developments are considered the most promi-
nent of these achievements through which the
Insurance Authority was keen to complete the
issuance of legislations regulating the insurance
sector. The Insurance Authority aims to ensure a
suitable environment for the development of the
insurance sector and enhancing the role of the
insurance industry in assuring persons, property
and liabilities against risks to protect the national
economy.
In 2018, Federal Law No. 3 of 2018 was issued to
amend some provisions of the Federal Law No. 6
of 2007 regarding the establishment of the Insur-
ance Authority and the organization of its Opera-
tions. Due to the maturity of the UAE insurance
market and increasing volume of investments
therein, the need called for some amendments to
the law that would enhance stability of the
market and provide means of greater protection.
The amendments also include the formation of
committees to settle and resolve insurance
disputes with the possibility to appeal the rulings
issued by these committees before the Courts of
first Instance. In addition, the amended law includ-
The achievements of the Insurance ed some provisions that regulate the Emirates
Insurance Association and provisions specific to
Authority improve the performance of the language of the insurance policy.
the insurance sector in the country
اﻟﻌﺪد اﻟﺜﺎﻟﺚ- ﻋــــــﺎﻟــــــﻢ اﻟــﺘــــــﺄﻣــﻴــــــﻦ 28 ALAM AL TAMEEN - THIRD ISSUE 23Reports Reports
The Authority issued the Resolution No. (12) of 2018 regarding the licensing, registration and regulating Digital Supervisory Platform
system of insurance consultants. It also issued the Resolution No. (14) of 2018 regarding the implementa-
tion of financial solvency mentioned in Chapter Two of the financial regulations for insurance companies, During 2018, the Authority commenced a project to establish a digital supervisory platform to supervise and
and the financial regulations for Takaful insurance companies on the branches of foreign insurance compa- control the insurance sector in the state. The Authority is looking to move the digital supervisory platform to
nies operating in the state. The report indicated that the Authority, based on its supervisory and regulato- the new era, or the next generation of supervision and control through the appropriate use of modern technol-
ry role on insurance companies and related professions, follows the demands of the courts and executive ogy and innovation in the services of the Authority and sector. The Authority adopts the best international
divisions of the cases, and addresses companies and banks in this regard. This includes executive seizure practices and best technology applications available to supervision and control of the insurance sector.
and precautionary attachment on related companies and professions, including the liquidation of bank
guarantees, if the follow-up and execution section of the Authority received (187) requests from the The Authority implemented several procedures regarding IFRS 17, as the provisions of the financial instruc-
courts and execution divisions from the various Emirates of the state. tions for insurance companies oblige all companies to prepare the financial statements according to the
international financial reporting standards (IFRS) and any amendments thereto in order to enhance the estab-
Supervision Developments lishment of the UAE insurance market rules, and in accordance with the latest global developments and
practices.
The Insurance Authority plays a regulatory and supervisory role on the insurance companies and profes-
sions related to the insurance in order to ensure that the insurance sector is organized and supervised. The Solving Policyholder Complaints
Authority also verifies compliance with relevant legislation and ensures the integrity of the financial
positions of the companies and related professions, whether in the technical and office financial supervi- Complaints handling and solving methods in the Authority have witnessed a great development, by moving
sion or field supervision. In this regard, the Authority has carried out, during 2018, a field inspection for from registering insurance complaints through personal attendance, by phone or fax and writing the
(120) insurance companies and related professions. complaint in a special complaints form, or using the Excel program, to electronic transformation, by submit-
ting the complaint through an electronic program for complaints.
Perhaps the most important thing that distinguishes 2018 is the enforcement of the provisions of financial
instructions for the insurance companies and financial instructions for Takaful insurance companies, and In 2018, the Authority launched a system to resolve insurance disputes related to al types of insurance and
developed a work plan to supervise and monitor the implementation of its requirements. received 6723 complaints through the electronic complaints system, and resolved 6689 complaints during the
year, with a percentage of 99%. The Authority also added the artificial intelligence to the insurance dispute
The Authority held a wide range of financial, technical and actuarial workshops and training courses resolution system, as the customer is informed of the resolution of the insurance complaint immediately after
specialized in the supervisory and regulatory requirements of the sector, where they discussed and registration of the complaint, which reduces the time for the customer. In addition, about 664 complaints were
discussed the most important regulatory requirements and financial and technical reports required from resolved through the artificial intelligence.
the sector. The Authority also launched the updated version 1.7 of the e-Forms. E-Forms have created a
consistent and unified approach to the financial and technical indicators that apply to all insurance Emiratization, Training and Qualification
companies.
Emiratization in the insurance sector occupies an important place in the Insurance Authority's strategy and
24 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 25Reports Reports
agendas, in line with the vision of the wise leadership, especially in raising the level of employee efficiency,
supporting Emiratization, and providing qualified human cadres that serve and achieve the vision of the wise
leadership of United Arab Emirates.
After issuance of the Cabinet Resolution on the new Emiratization strategy through points, the Insurance
Authority developed an integrated plan aimed at an integrated application of the strategy, in cooperation
with insurance companies and related parties. The Authority sets a series of measures, including the estab-
lishment of a unit specialized in Emiratization, determining a teamwork for applying the strategy, holding
joint workshops with insurance companies, issuing the Emiratization manual, version 2 for the insurance
sector, preparing specialized studies and questionnaires to study the market and national needs and
training needs of the sector. The Authority also aimed at calculating the target points, analyzing the
results, developing the e-system to calculate the targeted and achieved points of the companies, and link
thereof with the Ministry of Human Resources and Emiratization.
In addition, training in the Insurance Authority is considered one of the most important means of develop-
ing human capital, as the Authority has prepared a comprehensive training plan to educate and qualify
nationals working in the sector, based on the latest global practices in this field. Smart Services
The Authority also took a set of measures in this regard, including the launch of "My Skills" Initiative to The Insurance Authority application available at smart phones contributed to a qualitative leap in the provision
qualify and train national human cadres without no consideration in all fields of insurance specializations. of services and multiplicity of channels of communication with the policyholders, the public, companies and
The Authority also launched “Actuary” initiative to obtain a recognized qualification from the internation- professions related to insurance alike. It also contributed to simplifying the procedures, in line with the
al actuarial associations. directions of the wise leadership to develop the work environment, perform government work and fulfill the
needs of the customers and public.
And the launch of the Future Leaders Initiative (diploma in insurance). The launch of the "Anti-Money
The Authority ranked first in the digital transformation, and sixth in happiness index of customers for electron-
Laundering” and “Combating Terrorist Financing" initiatives to train compliance officers and all employees
ic/ smart services. The Authority also launched new electronic/ smart systems (insurance dispute resolution
of the sector, in cooperation with the British Chartered Insurance Institute, and sign a number of agree-
system, follow-up and implementation system, inspection system, licensing and registration system), and
ments with universities for promoting creative ideas and practical skills of students in development obtained ISO 27001 for information security.
projects at the insurance sector level. The Authority also launched academic insurance specialization as an
additional track within the financial specialization package, in cooperation with the higher colleges of The authority participated in the GITEX Technology Week 2019, displaying its most important achievements in
technology in the country. the field of modern technology and insurance services.
26 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 27Reports Reports
The 24th World Energy
Insurance Awareness
Conference - Abu Dhabi 2019
During 2018, the Authority implemented several awareness campaigns targeting policyholders and public all
over United Arab Emirates. The Authority strengthened its experiment in the organization of the international The insurance sector in the United Arab
conferences and awareness and educational workshops for the public, policyholders, students and employees Emirates is one of the most active sectors in
in the insurance sector and related professions. The Authority organized shaping the future conference in the view of its vital role in serving the national
insurance sector in light of electronic challenges in November 2018 in Abu Dhabi, the Ramadan Forum for economy and providing protection to it
customers and partners in June 2018. The Authority also hosted the meeting of the Arab Forum of Insurance and to the community.
Regulatory Commisions (AFIRC) (Arab Union of Insurance Supervisors - AUIS) in Dubai in September 2018, and
the Authority also won hosting Annual Meeting and Conference of the International Association of Insurance The importance of this sector and its vital
Supervisors to be held in Abu Dhabi in 2019. role in the national economy is reflected in
the volume of investment, amounting to
In 2018, the Authority continued to update the creation of cartoon series to facilitate the delivery of education- (60.7) billion dirhams at the end of 2017, as
al messages to the public and policyholders, as the Authority created the mother “Mohra"" character to direct well as the gross written premiums of the
insurance awareness messages to women in society. The Authority also obtained the intellectual property rights insurance market in the country amounting
for this character and issued many awareness publications and educational brochures, including "The Book: The to (44.8) billion dirhams.
Insurance Authority in 10 Years of Achievements and Excellence".
This vital role of the insurance sector was reflected in the growth of its contribution rate in the GDP to
External Relations reach (2.24%) in 2016. The growth is expected to continue in the subsequent years, corresponding to the
increase in the gross written premiums.
During 2018, the Insurance Authority succeeded in expanding the UAE's external relations network with the
world in insurance field, as the Authority has several agreements and memoranda of understanding with
Based on this vital position of the insurance sector in the national economy, the Insurance Authority acts
insurance supervision authorities in Arab, regional and international insurance centers, in addition to special-
a leading and remarkable role in organizing and developing the UAE insurance market.
ized universities and institutions.
Strategic and Future Planning The local, regional and international experience have been used to develop the necessary legislations to
organize, develop and improve the market in a sustainable manner. The legislations organizing the sector
The Insurance Authority has achieved many achievements in strategic planning and government excellence. aim to ensure the appropriate climate for its development, enhance the role of the insurance industry in
The most prominent achievement represents in the confirmation of the British Standards Institution that the insuring persons, property and liabilities against risks, protecting the national economy and developing
Authority entitles to obtain ISO certificate 9001: 2015, as all departments of the Authority contributed to achiev- the performance of the local insurance market and entities on legal basis.
ing this success, which is added to the previous successes of the Authority.
The Authority also participated in several national and international programs and awards, including Sheikh Energy insurance and nuclear energy plants are important topic for countries that have established or
Khalifa Government Excellence Program. have set up nuclear energy plants for peaceful purposes, including the United Arab Emirates.
28 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 29Reports
Given the catastrophic nature of energy and nuclear risks, insurance dealt with these risks by the forming
of pools. Therefore, the Insurance Authority has worked, over the past period, on the initiative of establish-
ing an insurance pool "the Nuclear Insurance Pool", which comprises a group of national companies to
provide coverage of nuclear energy in the UAE.
The Authority's endeavors has been successful, as this initiative was very successful. This resulted in the
retention of a larger percentage of premiums within the country, as well as building expertise in this special-
ized line of insurance. Moreover, the Authority has signed a memorandum of cooperation with the Federal
Authority for Nuclear Regulation (FANR) to enhance the ties of cooperation in assessing and evaluating :JCVCTGVJGPGYRQNKE[
insurance policies and sources of insurance. HGCVWTGUHQTVJGECT
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The Authority has undertaken several initiatives and programs during the last stage to increase the efficien-
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cy of the insurance sector, provide the best insurance services for the policyholders, beneficiaries and the
market, as well as, enhancing the competitiveness of the UAE market worldwide.
Additionally, the Insurance Authority has accomplished more achievements for the UAE insurance sector
during the last stage, which contributed to support the growth of the national economy and achieve the
vision and strategy of the State in many vital areas.
The Authority is currently studying several technical and technological projects that will contribute to the
development of the insurance sector, according to the mechanisms of technological supervision, including
the transition to the next generation of insurance sector supervision, through the preparation of the
digital supervisory platform and the electronic link with insurance companies.
The insurance programs and projects of the Insurance Authority and the positive growth indicators of the
national economy and the local market indicate that the insurance sector in the UAE is heading towards
a new stage of increasing business growth, developing the competitiveness of the UAE's insurance market
and enhancing its leading position in the region and worldwide.
30 ALAM AL TAMEEN - THIRD ISSUEAuthority Activities
H.E. Eng. Sultan bin Saeed Al Mansouri, Minister
of Economy, Chairman of the Board of Directors
of the Insurance Authority launched the first
digital supervisory platform in the insurance
sector in the UAE.
The announcement of the implementation of the
Digital Supervisory Platform was part of the Insur-
ance Authority's initiatives in the “UAE Innova-
tion Month 2020” within the context of the IA’s
efforts to support entrepreneurship, promote the
role and contribution of the insurance sector in
the service of the national economy.
Al Mansoori said that the main objective of the
platform is to "develop and strengthen the system
of supervision and control on the insurance
sector in the UAE in accordance with the best
international practices, through the development
of a digital supervisory platform that includes
(database of insurance operations and financial
reports and information Management System).
This to be conducted in accordance with artificial
intelligence applications to simplify the process of
The first Arab in the insurance sector financial and non-financial reporting of all insur-
ance companies and related professions, includ-
Launch of a "Digital Supervisory Platform" ing brokerage companies, health insurance claims
management companies, insurance consultancy,
to enhance the competitiveness of the examination experts, appraisals and actuarial
companies licensed to practice in the UAE.
sector in the country H.E. Ebrahim Obaid Al Zaabi, Director General of
the Insurance Authority pointed out
ALAM AL TAMEEN - THIRD ISSUE 33Authority Activities Authority Activities
Insurance Dispute Resolution
“The digital supervisory platform of the Insurance Authority is the first in the Arab insurance markets, It
aims to support the control and supervision of the insurance sector in the State through providing timely Committees start their business of receiving
data for decision makers , including key performance indicators and vital assessments of all the underlying
risks inherent in insurance companies' activities to ensure that they continue to operate in a safe and
complaints and resolving them
sound manner, and to intervene effectively and in a timely manner in specific issues in the sector's financial The Insurance Authority “IA” started work of the Committees for the Settlement and Resolution of Insur-
situation which in turn help in supporting decision making.” ance Disputes last November by initiating receiving complaints and insurance disputes from the insured,
beneficiaries and victims, review the same, making decisions to determine and resolve the dispute.
Al Zaabi added that the IA is looking forward to move to the digital supervisory platform of the new era
and the next generation of supervision and control through the optimal use and employment of modern H.E. Ebrahim Obaid Al Zaabi, General Manager of the Insurance Authority said. The launch of the work of
technology and innovation in the services of IA and the insurance sector as well. the Insurance Dispute Resolution Committees followed completing the formation of committees as per
the Board of Directors decision no. (33) of 2019, in accordance with the provisions the Federal Law
‘Concerning the Establishment of the Insurance Authority and the Regulation of its Operations.
On the other hand, the digital platform will enhance the anti-money laundering and terrorist financing by
providing a database and statistical information that contribute in protecting the sector from this aspect,
Al Zaabi explained that the work of the Committees will cover all types and classes of insurance arising
reducing and managing potential risks.
from the complaints of the insured, beneficiaries or affected stakeholders in the insurance dispute against
insurance companies licensed to practice the insurance activity in the State, regardless of its value whether
The Director General of the Insurance Authority confirmed that the project will enable IA to achieve its
estimated or not.
objectives and strategic vision. It will allow for rapid move towards the digital age and leadership in the
application of the best international practices in the supervision of the insurance sector with the aim of
He added, Insurance Dispute Resolution Committees will begin working in the first phase through two
developing it and supporting the UAE national economy.
committees in Abu Dhabi and Dubai, with the possibility of forming other committees in any Emirate as
appropriate and as required as per the public interest.
He stressed out the IA keenness to provide the services of the committees, facilitate and make it easy to
the customers and stakeholders in all UAE emirates.
The Director General of the Insurance Authority explained that, based on the IA concern for the principle
of transparency and justice in the work of the Insurance Dispute Resolution Committees, the chairmen of
the committees were selected from the Judiciary and the membership IA’s staff with experience in the
insurance business, which leads to the protection of the rights of the insured and beneficiaries in addition
to achieve the interest of the parties in accordance with the specified legal frames.
34 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 35Authority Activities Authority Activities
The Insurance Authority is Working to
IA seeks through the being of the Committee’s work to speed up the adjudication of insurance disputes,
and to ensure that the insurers and beneficiaries of insurance contracts receive their rights without delay, Implement a Technological System in the Insurance
just and objective, He stressed out.
Business to Reduce Traffic Accidents
Al Zaabi added that the formed committees are fully prepared to receive insurance complaints that fall The Insurance Authority is working on a modern technology system in vehicle insurance to monitor the
within their jurisdiction, and to adjudicate them in accordance with the legal provisions. behaviour and guidance of drivers when committing misconduct while driving, which contributes to
reducing traffic accidents and reducing the number of road traffic deaths.
IA calls on the insurance policies holders and beneficiaries who have insurance disputes that have been
This comes as part of the Authority's contribution to the implementation of the national agenda for the
considered through IA complaints divisions, and who have objections to the solutions and clarifications
UAE Vision 2021, and the achievement of the national index by reducing the number of deaths due to
provided by insurance companies, to refer their disputes to Insurance Dispute Resolution Committees, road accidents to 3 per 100,000 of residents.
supporting their claim with evidence, documents and required exhibits.
H.E. Ebrahim Obaid Al Zaabi, General Manager of the Insurance Authority, said The implementation of
this system came after the Authority presented to the Government Accelerators Committee, the initiative
to adopt the best international applications that adopt modern technologies (e.g. telematics technology)
to reduce traffic accidents and the number of road deaths, which contribute to the achievement of the
national index reduces the number of deaths from road accidents to 3 per 100,000 residents.
He added that the implementation of the Initiative of the Authority will be through cooperation with
some strategic partners from government agencies through the government accelerator initiative, such as
the Ministries of Interior and Economy, the Emirates Authority for Standardization and Metrology, RTA in
Dubai, the Transport Departments in Abu Dhabi and UAE Transport, Abu Dhabi National Petroleum
Company (ADNOC), FTA, TRA in addition to the insurance companies.
He pointed out that the Authority has conducted extensive studies on international best practices and
applications that adopted modern technologies through motor insurance, which would reduce traffic
accidents and reduce the number of road traffic deaths.
Al Zaabi confirmed that the results of the studies showed that the adoption of a modern technology
system using telematics technology led to a decrease in the number of accidents in some countries to 50%,
through the success of the system in guiding drivers in the method of safe driving, and improving the
behavior of remote drivers, and the development of the positive insurance record for drivers, which has
been positively reflected in the increased degree of traffic safety on the road.
36 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 37Authority Activities Authority Activities
The Insurance Authority Launches a Training
He explained that the implementation of the initiative will be through several stages, including the preparation of
the database infrastructure and the operator, through the formation of a joint committee of stakeholders, and the Initiative for Government Financial Bodies and
application of the initiative to transport vehicles in the pilot phase. Then to be applied on taxis and vehicle
commercial fleets, rental cars and private cars. Arab Bodies In "Combating Financial Crimes"
The Insurance Authority has launched a tele-training initiative for employees in governmental financial
He added that the Authority has proposed to start implementing the initiative through the pilot application by institutions, supervisory bodies and insurance companies in Arab countries, regarding combating financial
installing 1,000 devices on taxis and commercial vehicles in the first phase, and measuring the results of the applica- crimes and providing them with the necessary knowledge and practical expertise in this field.
tion.
H.E. Ebrahim Obaid Al Zaabi, General Manager of the Insurance Authority said This training initiative is
He explained that the "Telematics" device, which is similar to the size of a mobile phone, will be installed under the targeting employees of government agencies in the financial sector and Arab entities. This comes as a part of
vehicle's steering wheel, and will work to measure real-time data and information related to the behavior and a vision to be a leader in the development and organization of the insurance sector, and to raise its standards
driving style of the vehicle. This includes (speed, skip style, acceleration, brake pressure, engine condition and in to compete on the global level, he added.
cases accidents the device measures the circumstances of the collision and the severity of the accident and time).
The device also helps the concerned person to contact the driver immediately after the discovery of the accident, He stressed out that this initiative, which will be free of charge, is a continuation of a similar initiative imple-
and provide assistance to him, while all data is sent to the entity for processing and analyzing the data, and to mented by the Authority for insurance workers in the UAE through the remote training platform, estab-
determine the driver's driving style. lished by the Authority in coordination with the International Compliance Association in the United
Kingdom, which specializes in combating financial crimes, anti-money laundring and combating terrorism
The Director General of the Insurance Authority added that the application of the system will help the insurance financing.
sector to know the driving style of drivers and analyze it, in addition to link the price of insurance to the style of
driving and use of the vehicle, reducing insurance prices, He added that: The objectives of this initiative are to accommodate best practices, to build a generation have
facilitating the settlement of claims, identifying all techni- the best skills and expertise in combating financial crimes, anti-money laundring and combating terrorism
cal details in the event of a vehicle accident, reducing the financing. Furthermore, it aims at helping the workers in the government agencies and Arab insurance
amount of compensation by eliminating fraudulent agencies to recognize responsibilities related to financial crime, the interrelated nature of the risks associated
claims and increasing the sector's contribution to GDP with it, the identification of various risks, and the effective response to them, which ensures the safety of the
resulting from reduced waste in vehicle damage repair insurance market and the financial sector in the UAE and the Arab countries, and prevents the entry of crimi-
spending. Furthermore, it helps to reduce the number of nal groups into it.
deaths, save lives as a result of reducing the accident rate
by about 50%, prepare a database for drivers, comply with
traffic law, achieve positive indicators in traffic safety, in Al Zaabi confirmed the Authority's keenness and continuous efforts to raise the level of knowledge and
addition to helping to achieve the speed of response to experience among workers in the UAE insurance sector, government financial sector agencies in the UAE,su-
the distress call through access to emergency services. pervisory bodies on insurance in the Arab countries and to provide them with knowledge and practical skills
38 ALAM AL TAMEEN - THIRD ISSUE ALAM AL TAMEEN - THIRD ISSUE 39Authority Activities
He explained that the involvement of the employees of the supervisory and regulatory bodies of insurance
operations in the Arab countries comes from the role of the authority and its responsibilities as the
President of Arab Union of Insurance Supervisors in the current session, in hosting the Union headquar-
ters by the UAE.
He pointed out that the importance of developing the expertise of workers in the insurance and financial
sectors, providing them with international requirements and directives in addition to identifying the best
experiences and efforts in the field of combating money laundering and terrorist financing, to ensure the
sound performance of the UAE insurance market, and to develop the performance of the financial sector,
support the process of economic and social development in the Country.
The Director-General of the Insurance Authority indicated that the trainee would receive a "certificate of
compliance against financial crimes" after completing the training and passing the required examination.
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