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The need for regulating those who are practicing insurance in UAE

By : Ibrahim Al Rayes ACII, Chartered Insurer

 

 

 

Getting an advice or an actual policy cover on insurance that comes from a friend, a relative or even your barber is something normal in UAE in some cases that I have encountered, however, not at all safe.

 

In recent years, insurance authority did a great job and efforts to delete “scrap” those brokers who didn’t meet the minimum financial requirements to practice insurance, but is that enough? The new presented Law is also focusing or financial capital and mainly treats the problem of premium collection.

 

Year after year, we as insurance professionals and practitioners, find an increasing number of unqualified bodies that in some cases includes banks that sell insurance through untrained and unqualified personnel and salesmen. An increasing number of unregistered brokers are even selling insurance through different means including online websites that operates from free zones or car registration companies without having any license to operate as a broker!!

 

With increasing levels of competition between the major players in the UAE insurance market and the pressure of losses that everyone in the sector is suffering from, it is inevitable to have a strict and well-structured regulations  to allow those who have invested in their companies, education and experience to apply best practices and commit to the code of conduct of such sensitive and important industry which will surely reflects positively on the economy and individuals who deserve best advice and customer service. In addition to promote the industry by increasing public trust and confidence that will not materialize if everyone can and still by some way or another give consultation and execute risk management to people who may pay a heavy price as a result of such ill advice.