Insurance Authority signs a memorandum of understanding with the Insurance Regulatory and Development Authority of India

: 2/15/2016

Al-Zaabi: The MoU comes within the framework of both countries' interest to enhance the strategic partnership into advanced levels.

Abu Dhabi, February 15, 2016

On the sidelines of the visit of His Highness Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces to the Republic of India, the Insurance Authority (IA) and the Insurance Regulatory and Development Authority of India (IRDAI) signed a Memorandum of Understanding aiming to enhance the mutual interests and cooperation in the field of insurance supervision based on quality and joint interest.

High Excellency Ibrahim Obaid Al Zaabi, IA Director General, exchanged the MoU with the Chairman of IRDAI, noting that the UAE is the first country with which the Indian regulator signs a MoU in the insurance field at the world level.

Mr. Zaabi stressed the importance of signing the MoU during the visit of His Highness Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces to India.   “Cooperation in the insurance field is just a part of the new cooperation and strategic partnership that has been established between the UAE and India during the visit. Signing the MoU comes within the strategic partnership framework between the UAE and Republic of India to serve the interests of both friendly countries and upgrade this partnership into advanced levels,” he said.

He referred to the endeavor of both the Insurance Authority in the UAE and the IRDAI in India to enhance the mutual interests and cooperation in the insurance supervision field including overseeing the reinsurance based on quality and benefit.

The IA Director General said that the signing of the MoU with the Indian Party accounts for quality step for the Insurance Authority in order to exchange information and expertise and to enhance and upgrade the strategic goals of the Authority especially in connection with the development of the insurance sector's performance in the State and to strengthen competitiveness of the insurance market and develop its professional, technical level and promotion of UAE as a regional international center in insurance which would contribute to enhance performance of business in the local market and develop efficiency of performance of the insurance companies operating in the State and to protect the insurance policyholders and provide better services to the dealers.

He clarified that the MoU seeks to enhance and improve cooperation between both the Authorities in the field of insurance oversight through provision of cooperation framework such as the communication channels and increase of mutual joint understanding through exchange of relative regulatory information and supervisory information in order to enhance and secure compliance with the laws, regulations and regulatory requirements.

Mr. Zaabi confirmed the importance of the MoU in exchanging information and technical insurance experience in the UAE and Indian markets in the field of research and studies that would contribute to the development of the supporting best practices to upgrade the insurance services in the State.

He referred to the stature of the insurance market in the UAE at the regional and international levels showing that the subscribed premiums in the State account for 44% of the market volume in the Gulf region and 33% of the Arab market volume that amounted to AED 35.5 billion in 2014.

The scope of cooperation between the two parties under the MoU includes: encourage reciprocal assistance, exchange of information to help each other in performing the respective tasks of the parties through exchange of documents including the information pertaining to the potential insurance fraud cases.

It also includes exchange of expertise in the insurance oversight through training, symposiums, participation in the specialized training programs with the specific educational concentration, provision of booklets and training materials containing trends and policies of the insurance markets belonging to the two Authorities, supervising them, trends of mutual cooperation in the international insurance supervisory organizations, exchange of experts in the field of insurance supervision, inspection techniques, exchange of information and other assistance in supervising the transnational institutions and provision of transnational insurance services.

The IA which was established under the provisions of the Federal Law No (6) of 2007 assumes organization of the insurance service activity and supervision over them in a manner to provide the proper atmosphere to develop and enhance role of the insurance industry in safeguarding the persons, properties and liabilities against risks in order to protect the national economy and to gather, grow and invest the national savings to back up the economic growth in the State and to encourage the fair effective competition and provide best insurance services at competitive prices and coverage and to localize the jobs within the insurance market.

The IRDAI which was established in 1999 is responsible for the regulation and development of insurance sector in India and seeks to protect the interests of the policyholders and to organize and enhance the regular growth of insurance industry in India.

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