E-insurance draft rule invites feedback

The UAE Insurance Authority has invited feedback for the draft regulation applying to all electronic insurance operations practiced by licensed insurance companies, brokers, agents and third party administrators.

Before submitting an application to obtain the approval of the Insurance Authority to practice electronic insurance operations, companies will need to develop a specific action plan for electronic insurance operations, approved by the company’ board of directors prior to submitting it to the Authority. This plan shall include:  An analysis of the projected volume of electronic insurance operations for the next three years; an scrutiny of the risks associated with electronic transactions and the necessary precautionary measures and procedures to mitigate those risks, including, but not limited to – the risks of adverse selection, money-laundering and terrorist financing offenses in insurance activities, strategic risks and illegal access to the website; and a contingency plan which includes the actions that should be taken in case one or more element of the automated system of the website are disrupted.

The plan should include the corrective measures to ensure continuity of business, and reporting to the authorised officials within the company and the Authority.

The regulation draft lists responsibilities of the board of directors, executive managements, as well as the proper code of conduct of management of the website, which includes notifications to the regulator, transparency and disclosure, outsourcing requirements and other rules.