Abu Dhabi: The UAE Cabinet on Sunday issued a resolution granting insurance companies operating in the UAE one year to regularise their operations in accordance with insurance sector regulations.
The provisions of insurance sector regulations prohibit life insurers to combine other business activities such as fund management and other insurance-linked activities such as property and liability insurance.
Granting an additional year to insurers to meet the legal requirements, Engineer Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Insurance Authority, said the additional grace period of one year came as part of the UAE leadership’s approach to support national companies and improve their performance.
He said that the decision stems from the government’s endeavour to provide a greater opportunity for insurers to regularise their positions according to the prescribed criteria.
The Minister reiterated the government’s keenness to enhance the performance of the insurance sector and development of its business in line with the qualitative developments experienced in all sectors of the national economy.
The Annual Report recently issued by the Insurance Authority showed that there are 13 companies engaged in life insurance and fund accumulation operations, along with property and liability insurance, including 11 national companies and two foreign companies.