UAE – Compulsory appointment of actuaries to price motor policies
Saturday, 04 30 2016, Category: Insurance and Reinsurance, Country: U.A.E
The board of directors of the Insurance Authority decided that all national and foreign insurance companies operating in the country have to appoint an “actuary” in order to price property and other insurance policies including motor insurance covering theft, own damage, “comprehensive” liability, and “Third Party” liability. This aims at improving the pricing level and eliminating harmful competition practices.
The actuary undertakes studies and analyses of all the underwritten business at the insurance company in order to uphold solvency, protect profitability and subsequently setting the adequate technical prices for insurance policies in order to support the financial soundness of companies operating in the sector.
The actuary will be supposed to submit a report to the board of directors of the insurance company with a copy to be sent to the Insurance Authority in order to monitor the compliance of the insurance company with the implemented technical pricing.