IA launches an electronic system to collect the financial statements of brokerage companies

: 6/28/2016

Abu Dhabi June 28, 2016

The Insurance Authority (IA) launched an electronic system that allows the insurance brokerage companies to enter that the data of their financial statements automatically with the aim of collecting the financial statements and develop monitoring of their performance.

The system is adopted in line with the IA’s plan to develop the insurance brokerage sector and boost its competitiveness which started with the issuance of the Insurance Brokerage regulation in 2013, being an advanced regulation to regulate such profession in the United Arab Emirate, reorganize the market as per the professional practice control standards according to the existing international standards, and improving the broker work environment to ensure having qualified brokers in place and protecting the interests of all the related parties.

The electronic system aims at analyzing the collected statements received from the brokerage companies to allow the IA to identify the financial position of the companies in particular and their performance as well as the details of their financial statements in terms of the total premiums and commissions whether in relation to the liability and property insurance or the insurance of persons and fund accumulation and therefore allowing the IA to interfere when necessary.

The new system conforms to the approved international financial reporting standards where the statement such as the income statement, cash flow statements, and statement of changes in equity, will be inserted on a quarterly and annual basis.

The system will contribute to consolidating the financial statements of the insurance brokerage companies according to specific international forms while benefiting from the electronic features of modern technology in terms of presenting precise statistics that allow the IA to take the appropriate technical decisions and work on setting some of the key indicators of the financial analysis and the financial indicators.

The system enables the brokerage companies to activate the role of internal control and develop the monitoring processes by auditing the statements by the internal controller of the brokerage company.

The IA started adopting this system on a pilot basis in the first phase and it sent the trial version to the brokerage companies to present their notes and suggestions to develop the system before it is finally approved for application in the forthcoming period.

The total number of insurance brokerage companies licensed by the IA amounts to 151 companies as some companies were deregistered for failure to meet the key conditions for adopting the decision of the insurance brokerage regulation.​​​​

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