The UAE Central Bank has announced the formal procedures for the merger of the Insurance Authority with the Bank have started. The Bank has established several committees and working groups to oversee the merger which is aimed at transferring the supervisory and regulatory responsibilities of the Authority to the Bank.
It is being executed in line with Federal Decree-Law No. 25/2020 which states the Central Bank will assume the regulatory, supervisory, licensing and enforcement functions of the Authority.
The Bank will be responsible for monitoring the financial solvency of insurance companies, ensure they carry out business ethically and the rights of those who are insured are protected. The rules, Decisions, Circulars and regulations issued by the Insurance Authority in line with Federal Law No. 6/2007 will continue to apply to all licensed institutions and activities until replaced by regulations issued by the Bank.
It is part of wider efforts to transform the Central Bank into one of the world’s top 10 central banks.