Insurance Authority merged with CBUAE

Move to boost role of insurance industry in national economy

The two resolutions come in the light of the government’s efforts to enhance the performance of financial institutions.

The Cabinet, chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai, has approved the issuance of a federal decree- law regarding the amendments of some functions of the Central Bank of the UAE ( CBUAE) and merging the Insurance Authority, ( IA) with the Central Bank.

The Cabinet also issued a federal law by decree regarding the distribution of competencies and authorities between the Securities and Commodities Authority ( SCA) and the licensed securities and commodities markets in the country, so that the operational and executive authorities of the SCA are transferred to these markets.

Modernisation process

The two resolutions come in the light of the government’s efforts to enhance the performance of financial institutions and support their work through continuous modernisation of the relevant legislative frameworks, in a way that contributes to developing the financial sector, achieving financial growth and stability, and granting the financial markets operational and executive powers that assist them to leverage themarket performance level.

Regarding the amendment of the functions of the Central Bank, the decree stipulated merging of the IA with the CBUAE, and transferring all the powers of the authority to the bank, to ensure itworks to provide the appropriate environment to develop and boost the role of the insurance industry to support the national economy and provide the best insurance services with competitive prices and coverage.

The decree- law also added to the competencies of the Central Bank to regulate, develop and supervise the insurance sector and business, to propose and implement the legislation regulating it, to receive requests for establishing and opening branches and representative offices of insurance and reinsurance companies, agents and related professions, and to issue the necessary licences for them in accordance with the legislations regulating them.

The bank will protect the rights of the insured and the beneficiaries, and monitor the financial solvency of insurance companies, to provide adequate insurance coverage as protection.