For insurance companies, at this time of heightened global uncertainties, there is a high possibility of operational failure occurring during the course of its operations and activities, which could lead to less priority given to the fair treatment of customers. The interaction between the insurance company and its potential and existing customers is generally guided under the rules of conduct of business (also known as market conduct). This Insurance & Takaful Regulatory Report (ITRR) 2021 aims to take a look at these issues related to market conduct and is therefore themed Conduct of Insurance & Takaful Business Regulation in GCC Markets. The ITRR 2021 aims to assess the insurance legislations in the Gulf countries related to conduct of business and present a comparison of these legislations against international best practices.
The ITRR 2021 starts by illustrating the role of insurance for economic prosperity and the key functions and purposes of regulations in maintaining the industry’s stability and consumer protection. The ITRR 2021 attempts to document the historical developments of the insurance industry in each of the Gulf countries, and spotlight some of the current developments witnessed in certain markets, e.g., the transformation of the regulatory and supervisory framework in the UAE and Kuwait.
The report gathers inputs from the legislations issued by the six regulatory and supervisory authorities of the insurance industry in the Gulf region, namely the Central Bank of Bahrain, Insurance Regulatory Unit of Kuwait, Capital Market Authority of Oman, Qatar Central Bank, Saudi Central Bank and Central Bank of UAE. It proceeds to identify those legislations relating to conduct of business in order to compare them with the best practices issued by the relevant international standard-setting bodies, e.g., the International Association of Insurance Supervisors (IAIS) and Islamic Financial Services Board (IFSB).
