Actions to regulate insurance in the GCC
Tuesday, 10 13 2015, Category: Insurance and Reinsurance, Country: Gulf Cooperation Council
The Credit Rating Agency “Standard & Poor’s” said that insurance companies operating in the Arabian Gulf countries have to focus on the new requirements since the regulatory changes became the top issue of insurance markets in most of the GCC countries throughout the past year given that insurance regulators introduced new laws ranging from special to comprehensive.
The UAE and Qatar adopted more comprehensive laws, whereas Bahrain, Kuwait and Oman adopted specific changes such as raising capital requirements, improving asset quality requirements and reporting requirements in both traditional and Islamic insurance companies.
The rating agency also praised the steps followed in the latest period in order to improve the laws of the insurance markets since the current active laws did not contribute to any development in the region. It indicated that these changes will provide a better protection to the financial soundness of the sector on the long term. Therefore, it will provide protection to policyholders and will strengthen the credit situation of insurance companies due to a better capital management and an improvement in operating standards.
Source: Al Bayan - UAE