IA Launches the Manual of Emiratization in the Insurance Sector to increase the rate on basis of the points system

: 6/18/2016

Abu Dhabi June 18, 2016

The Insurance Authority (IA) issued a guiding manual for Emiratization in the insurance sector pursuant to the Cabinet Resolution concerning the adoption of the Emiratization strategy in the banking and insurance sector.

H.E. Ibrahim Obaid Al Zaabi, Director General of the IA, said that the manual aims at implementing a new strategy for Emiratization to increase the job naturalization rates in the insurance sector, boost their participation in developing the market competitiveness, and creating a work environment that attracts the national cadres and qualifies them in consistency with the needs of the labor market in the insurance sector.

He asserted that the IA does not view Emiratization in the insurance sector only from a quantitative perspective but also from the qualitative perspective by qualifying and training the national human resources academically and technically in all job levels, especially the advanced levels.

Mr. Al Zaabi pointed out that the new Emiratization strategy is based on a new principle to drive the UAE nationals to assume advanced positions in the sector, increase the Emiratization rate according to a points system, and enhance the participation of the UAE cadres in various job levels in the labor market in accordance with an integrated and clear vision that supports the principles of the UAE Vision 2021.

He said: “the manual issued by the IA, which will be applied on all the insurance companies operating in the State, explains how to adopt the Cabinet Resolution issued in 2015 concerning adopting the Emiratization strategy in the insurance and banking sectors as well as the best adoption approach by the insurance companies in order to score the points targeted by the company which are based on calculating the relation between the number of UAE nationals and total premiums written in the State based on the statements submitted by all the insurance companies and through the forms enclosed with the Regulation.

The Director General of the IA affirmed that the manual is based on a mechanism to score the points by the insurance companies through three channels: first: investment in training and development by measuring the training and development expenses per UAE national in the company during the year. The second channel is the Top Management commitment by linking the Top Management bonus with the achievement of the target Emiratization system during the year. The third channels is the number of UAE nationals and the type of positions they assume by granting higher scores whenever the job is in Top Management and has a vital nature. The jobs were divided into four categories: Top Management, Middle (supervisory) Management, Non-Administrative Jobs, and Professional Jobs.

The earned scores were divided to three categories; Top jobs by granting them 5 points, Middle jobs 3 points, and Executive jobs one point. All the job categories are granted two extra points in case of professional jobs.

Top Management jobs include all the leadership jobs which duties and responsibilities include performing high-level works in general direction and provision of expertise in one or more of the work areas. The Middle Management jobs include all the supervisory jobs which duties and responsibilities include performing direct supervision, direction, and planning of the work programs and following up the achievement of the policies and objectives of the section or department by the program. Non-administrative jobs include diverse administrative duties and actions in various areas and their purpose is to implement the work programs and policies of the company under the immediate supervision of the superiors. The professional jobs include all the jobs which duties and responsibilities include performing professional works in the insurance area and present the necessary expertise in one or more of the various scientific fields within the specialization.

In the area of investment in training and development, points are calculated based on the efforts of training and qualifying their UAE employees. Accordingly, the more the investment in training and qualification of UAE nationals during a year, the allocated rate increases and reflects on increasing the points earned by the company.

In the area of Top Management commitment, the insurance companies can earn points by linking its Top Management bonus with the achievement of target Emiratization points. Thus, the higher the rate linked with the op Management bonus for the purpose of achieving Emiratization during the year, the higher the allocated rate which reflects on increasing the points earned by the company.

In the area of the number of UAE nationals and job type, the company is granted points in general whenever the number of UAE employees increases. The company that hires UAE nationals in vital, top, or supervisory positions earns more points and therefore the number of earned points increases.

The points were divided on the special groups noting that the employment methods vary in the insurance companies. All possible employment forms are selected and classified within groups namely; full-time employees or 100% full-time homed-based employees who are employed on the date of calculating the points in addition the part-time employees and 50% part-time employees who are employed on the date of calculating the points.

The company can score extra points by employing individuals with special needs or by sending the UAE students in scholarships to obtain academic certificates or hiring them once they return after obtaining the academic qualification.

 

The manual lists the details of the contractual relation between the insurance company and the UAE employee as well as methods of computing the employment operations. It also provides a number of new definitions which help the insurance companies select the adoption approach that suits them to score the target points.

The IA will continue issuing a number of updates to the manual to address all the adoption issues facing the IA and the insurance company. The IA will further post all the questions and answers on its website to make the adoption process transparent and to help the companies get the answers faster.​

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