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
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
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
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.