Insurance Commission emphasized the importance of projects, financial instructions prepared by the Commission in the organization of the domestic insurance market in terms of developing the necessary controls to regulate the investments of insurance companies in the state and protect the rights of policyholders and shareholders of insurance companies.
Said Fatima Mohammed Ishaq Al-Awadi, Deputy Director General of Insurance, in a speech opening the workshop held by the Authority with more than 40 experts actuarial staff in the insurance sector in the world, held in Dubai late last week, this workshop is a continuation of the approach adopted by the Board to discuss the projects with the help of financial companies and specialists, which comes after similar workshop held during the month of October with insurance companies operating in the country, which was a good opportunity to listen to the observations of these companies and the views on the draft financial instructions.
Goal of the
She Awadi that the importance of this workshop, panel discussion comes from the conviction of the Insurance Commission technical expertise high for actuaries in the insurance field for the improvement and development projects, financial instructions, and that the Commission aims to support the process of financial insurance companies, to protect the rights of consumers of insurance and support the stability of the domestic insurance market.
She explained that the workshop with Actuaries who know those involved in estimating the value of insurance contracts, documents and accounts relating thereto, focusing on the discussion of aspects of interest in the projects financial instructions, particularly with regard to the rules of calculation of technical provisions and principles of the investment policy of the funds corresponding to the rights of holders of insurance and rules relating to margin of solvency of Finance.
She said these principles and rules designed primarily to check on insurance companies' ability to meet its current obligations and future and thus ensure the rights of policyholders and beneficiaries in those documents.
The necessities of controls
She drew Awadi that local insurance companies suffered during the last period of extensions, the effects of the economic crisis and financial crisis into the local market, also suffered from some eruptions investment that led to the injury of investment portfolios for some insurance companies in a state of imbalance, which require the development of certain controls to reduce of that unruly impulses.
She added that the Authority noted that the rules followed by some insurance companies on how to calculate the technical provisions are still based on certain percentages may not be identical to the rules for the calculation of the optimal allocations.
She stressed that the Takaful companies, whether domestic or public, the work of the insurance of a special nature have their origin, first character of the cooperative is one of the major characteristics of the Takaful Insurance, and secondly the need to ensure that all transactions of the company both in the field of insurance or investment in accordance with the provisions of Sharia Law, that demonstrates the importance of the rules governing the financial aspects of Takaful insurance companies, and confirm at the same time the importance of discussions on the draft financial instructions, which will lead inevitably to the substantive proposals to help the Insurance Commission in its formulation of sophisticated systems keep pace with the changes and challenges facing present and future.
Guarantees against risks
She Awadi that if the banks receive deposits from clients, the life insurance companies, which receive savings of the insured, provided in addition to guarantees against the risks that might be exposed to individuals, indicating the importance of financial instructions for life insurance companies by virtue of the dual task . She added that most of the documents and general insurance extends for a period of one year, while the life insurance may extend for a period of fifteen years or twenty years, making it necessary reassurance to the solvency of the insurance company during this long period.
Exchange of views and discussions
And exchange of officials the Insurance Commission with Actuaries During the workshop, opinions, discussions and observations about the projects financial instructions that lead to positive results will be reflected on the projects financial instructions are limited and there are no gaps or omissions in these instructions does not serve the requirements of insurance companies and the interests of the local market and national economy and improve the instructions to best standards and practices prevailing in the insurance sector.
Authority officials responded to questions and inquiries of Actuaries on various items proposed in the draft financial instructions.
For their part, the actuaries workshop participants expressed their appreciation for the Insurance Commission that allowed them the opportunity to discuss projects, financial instructions, which will organize the domestic insurance market, which come within the Commission's efforts in the participation of specialists to take advantage of their experience in projects financial instructions before approving the final version.
A quantum leap
The actuarial Sami Sharif, said that projects financial instructions, prepared by the Authority considers quantum leap in the insurance sector, a process that is very applicable in the UAE market and the region.
He stressed that the content of projects advanced and sophisticated than it exists in several regions in the world.
Actuary and, in turn, said Omar guide, The clauses of projects financial instructions prepared by the authority is the most advanced in the region is keeping abreast of and consistent with those in European countries and developed countries. He explained that the projects depends on the transparency, clarity and include many of the points advanced in addressing the financial issues concerning the insurance sector.
At the end of the workshop has Awadi granting insurance companies operating in the State additional time for a week added to the time periods the previous, which increased to seven months to provide the insurance proposals and observations, which will be examined and analyzed before converting the projects financial instructions to the laws and regulations according to the best standards and practices.
The workshop with Alxtorain and those held recently with companies to discuss the projects financial instructions come within the Commission's efforts to involve the private sector to regulate the activity of the insurance sector in the country and increase its competitiveness at the regional and global levels would contribute to strengthening the capacity of the national economy in the face of various global challenges.
The Insurance Commission has and the preparation of projects, financial instructions of the three set up four projects accounting instruction on the identification of company assets that correspond to its insurance obligations and the accounting policies to be adopted by the Company and the necessary forms for reporting and presentation of financial statements, and the basis for organizing accounting books and records of companies, agents, brokers and determine the data to be included, and records which the Company must organize and maintain data and documents that must be provided to the Commission.