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UAE Insurance Authority to delay BOD-49 until six months

UAE Insurance Authority
Some insurance companies in the country have expressed it requires more than the stipulated time for successful implementation

The UAE’s Insurance Authority (IA) might delay the implementation of Board of Directions 49 (BOD 49) until six months, the local media reported. 

However, some insurance companies in the UAE have expressed concerns that the six months delay might be too short and a long period is required to successfully implement the IA’s decision. 

Last year, the IA had issued new regulations regarding life insurance and family takaful insurance. It was reported that both insurances will have a commission cap of 4.5 percent on the sale of offshore bonds or portfolio bonds. Nigel Green, founder and CEO of deVere group, told the media, “We support the UAE authorities’ commitment to the country’s vital financial services sector. Their proactive stance further protects clients and makes the industry itself more robust.”

The draft pointed out that the minimum commission paid for protection products is 10 percent of the annual premium multiplied by the number of years of the insurance certificate. This is subject to not more than 160 percent of the annual premium, media reports said. 

The new regulations are known as Circular 12. They provide more clarity on the terms and conditions in various aspects of life insurance policies. These aspects include  premium, amount of insurance, charges and expenses and an annual account statement for each policy. 

Now the delay in implementation will go on until at least October 16, 2020. Strict requirements in the future will change the country’s insurance industry. 

Some fear the impact of these changes on the industry, media reports said. 

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