The UAE and Saudi Arabia Central Bank will Work Together on the Supervision and Regulation of the Insurance Sector.
Pavitra Shetty- at Banking & Financial Services
- on Sep 22, 2022 - 17:29
The Central Bank of the UAE has signed a preliminary agreement with the Saudi Central Bank known as Sama, to establish a general framework for the supervision of the insurance sector in both countries.
As part of the Sama agreement, both countries will exchange supervisory and regulatory information related to solvency rules, the calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement of regulations on insurance companies, including cross-border companies. The countries will further exchange information related to suspicious activities, fraud in the insurance sector, money laundering, and terrorist financing.
This MOU is part of an agreement signed by the two countries on financial services and market regulators to promote mutual cooperation and common interests in the supervision and regulation of the insurance sector. The regulators will come together in the implementation of international standards in their markets, 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:
1.Exchange of supervisory and regulatory information, including those related to solvency rules.
2.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.
3.Exchange of information related to suspicious activities, fraud in the insurance sector, money laundering, and terrorist financing.
4.There will also be joint activities in organizing training, exchanging experiences in the areas of licensing, and coordinating the implementation of standards and recommendations issued by relevant international organizations.
This initiative will strengthen the integrated economic system between the two countries in the insurance sector.
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