UAE insurers’ transition to tougher norms
Tuesday, 02 16 2016, Category: Insurance and Reinsurance, Country: U.A.E
The UAE insurance sector is in a transition phase towards tougher solvency requirements.
“Companies are provided three years to align their operations to the new solvency requirements which will become mandatory from 2018,” said Cedric Charpentier, CEO of AXA Insurance (Gulf). “We feel the requirements will have a significant impact on the market with companies needing to strengthen their financial position and weaker players may need to exit or look for support through consolidation.”
The new solvency regime forms part of the financial regulations issued by the Insurance Authority at the end of 2014, which also addressed areas such as investments, technical reserves, asset liability matching and Books of accounts.