Merger is part of a bigger initiative to transform CBUAE into one of the top 10 central banks globally
Dubai: The Central Bank of the UAE (CBUAE) has commenced the operational procedures to merge the operations of the UAE Insurance Authority with the apex bank which will bring under it the supervisory and regulatory responsibility of the insurance sector.
This follows the Decretal Federal Law No. (25) of 2020 to merge the Insurance Authority into the Central Bank.
“The decision to merge the Insurance Authority into the Central Bank of the UAE is part of a bigger initiative to transform the Central Bank of the UAE into one of the top 10 central banks globally,” said Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and Chairman of the Central Bank of the UAE.
Sheikh Mansour expressed his confidence in CBUAE to perform its mandate across its core functions, including the supervision and regulation of licensed institutions ensuring financial stability and consumer protection in the insurance sector.
The decretal federal law issued earlier in this regard stipulates that CBUAE shall assume the regulatory, supervisory, licensing and enforcement functions of the insurance sector.
The CBUAE will provide an appropriate environment to develop and enhance the dynamic role of the insurance industry to ensure financial stability, encourage competition, and support Emiratisation.
“Giving the Central Bank a broader mandate will ensure that high standards of supervision and regulation apply to all the sectors which we regulate including banking, insurance, money exchangers and payment services providers,” said Abdulhamid M. Saeed Al Alahmadi, the Governor of the CBUAE.
“Our vision to build a prosperous insurance sector protects the interests of the policyholders and ensures adequate supervision and regulation, characterised by financially strong and properly managed insurance market participants who follow the highest standards of market conduct,” he added.