The silence is perhaps surprising, given that many local industry commentators have long called for a tidying up of the UAE insurance industry and the perception that there is widespread mis-selling in the region. It also comes despite local trade body, the Emirates Insurance Association (EIA), welcoming the announcement earlier this week.
The proposals, which can be viewed by clicking here (part1) and here (part2), are mainly targeted at regulating the practice of brokers in the region. The proposed measures include increasing the guaranteed capital a broker must hold to AED3m, raising qualification requirements and formalising agreements between brokers and insurance companies.
Earlier this week Fareed Lufti, the secretary general of the EIA, welcomed the proposals and said they should go some way to combating mis-selling in the UAE.
International life offices with a presence in the UAE include Friends Provident International, Generali International, Zurich International Life and Skandia International.
Advisers meanwhile, have welcomed the move. Sarah Lord, wealth planning director, Killik & Co, Middle East & Asia said it showed there is appetite to change the current status quo, although she warned it would only be effective if properly enforced – something which she said has not always happened in the past.
