UAE and Saudi central banks will launch framework to supervise insurance sector
Deal on insurance sector oversight is part of wider financial services agreement
Dubai: The UAE and Saudi central banks will set up a framework of cooperation for the supervision and control of the insurance sector in these countries.
The MoU is part of an agreement signed by the two on financial services and markets, and their regulators' ‘effort to promote mutual co-operation and common interests’ in the supervision and regulation of the insurance sector. "The MoU would improve the performance of the financial sector supervision system, investment growth and trade co-operation, as well as promote economic partnership between the two countries," said Khaled Mohamed Balama, UAE Central Bank Governor.
The regulators will also join hands in the implementation of international standards in their markets, particularly IFS, in addition to the standards and recommendations issued by the International Association of Insurance Supervisors and the Islamic Financial Services Board.
The cooperation will extend to:
- Exchange of supervisory and regulatory information, including those related to solvency rules.
- The calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement on insurance companies, including those with cross-border operations.
- Exchange of information related to suspicious activities, fraud in the insurance sector, money laundering and terrorist financing.
- There will also be joint activities in organising training, exchanging experiences in the areas of licensing, and co-ordinating the implementation of standards and recommendations issued by relevant international organisations.
"SAMA looks forward to working hand in hand with the Central Bank of the UAE for the strengthening of the integrated economic system between the two countries in the field of insurance," said Dr. Fahad bin Abdullah Al Mubarak, Governor of Saudi Central Bank.