The UAE Central Bank has introduced new legislation which mandates professional qualifications for senior insurance representatives.
The ‘Insurance Brokers Regulation‘ cites the CII’s Advanced Diploma as exemplary of the internationally recognised qualifications that will be required by CEOs and other similarly ranked management representatives.
The document on the new regulation was issued on 25 July stating that the directive was to come into place six months later and confirmed in a notification update on the CBUAE website which stated a start date of 15 February 2025.
It stated: “This Regulation shall be published in the Official Gazette in both Arabic and English and shall come into effect six (6) months from the date of publication. Insurance Brokers and Companies must regularize their status in accordance with the provisions of this Regulation before it enters into effect.”
Senior Management must have the qualifications and experience as a minimum holding a bachelor’s degree or equivalent, or the (ACII) designation from the Chartered Insurance Institute of London, or an advanced diploma accredited by a similar professional institute.
They must also have successfully completed three training courses in insurance or Insurance Brokerage; and have a minimum practical experience of ten years in insurance/Insurance Brokerage activities, and no less than five years if he/she holds a higher academic qualification.
The experience requirement for a UAE national shall be a minimum of five years and two if he/she holds a higher academic qualification.
Article 5 in the new regulations stipulates under the need for sector professionals to meet the necessary qualifications, knowledge and experience requirements and to have “a record of integrity, competence and financial soundness”.
The regulations also outline the criteria for continuing professional development (CPD), including fifteen hours for the Insurance Broker’s Representatives, Senior Management and Specialised Employees.
Gaenor Jones, CII Middle East regional director, welcomed the new legislation and commented: “This will have a major impact on the sector’s credibility, with corporates and organisations’ senior teams now mandated to attain accredited qualifications which prove their robust knowledge and capabilities. This will instil essential confidence in end users, including consumers, who can be certain that the advice they are being given comes from an informed and technically competent individual who has studied for and attained the appropriate qualifications, such as those provided by the CII.
“It is vital for sector employees to stay abreast of evolving developments in the insurance sector whether this be new products or regulations, and continuing professional development, ensures that this happens.
“We continue to work very closely with the central banks, not only in the UAE but across the Middle East and CSA region, to educate organisations about the importance of their employees pursuing and attaining internationally recognised qualifications. This latest legislation firmly underpins the CII’s mission to boost professional standards.
She continued: “We look forward to working with a wealth of UAE corporate organisations to help them comply with the new legislation. This development is indicative of a maturing market which will ultimately future-proof the UAE insurance sector – that’s excellent news for professionals working within it and more importantly for policyholders as this will enhance trust and confidence in the sector.
“This is a very encouraging development and we look forward to seeing these rules and regulations being cascaded to all insurance sector employees, showcasing how the UAE continues to lead the way to a progressive insurance sector” she concluded.
