Abu Dhabi June 28,
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
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