Abu Dhabi Beirut Dubai Erbil Muscat Ras Al Khaimah Riyadh Sharjah The Direction of Insurance Regulation in the UAE and the Anticipated Challenges Irshied Tayeb Head of Insurance & Reinsurance

Current and Future Regulatory challenges in the MENA: UAE Focus Regulatory framework currently imbalance between various regulatory function. In specific legislative and supervisory. Overcome the regulatory structure at the outset: twin peak, interactive, ministerial and independent. Regulatory reputation reformation to balance the overall authority and responsibility of the industry. Industry development in line with the regulatory reformation to line up to achieve optimal level. Industry practice to line up with international practice. Reinsurance dependency, risk averse, authority/responsibility, distribution, investment strategy. 26 March 2014THE DIRECTION OF INSURANCE REGULATION IN THE UAE AND THE ANTICIPATED CHALLENGES2

Current and Future Regulatory challenges in the MENA: UAE Focus (Cont’d) ERM as a way to address some of the technical challenges alongside the specific and general activities especially the highly scaled ones. Synergetic ‎activities between regional regulatory bodies, taking USA model as an analogy where 50 regulatory authorities and coordination association without active authority NAIC (National Association of Insurance Commissioner). International regulatory enhancement and regional and local response Basel II, solvency 2 and 3 and own regulatory. Establish non existent function ‎that is handled at reinsurance level to bring back in a viable way to cedent, main example risk modeling and ROE (commercial capital calculation). 326 March 2014THE DIRECTION OF INSURANCE REGULATION IN THE UAE AND THE ANTICIPATED CHALLENGES

Current and Future Regulatory challenges in the MENA: UAE Focus (Cont’d) Conversion of static into risk base approach while regulating and developing the insurance industry. Develop regulatory requirement to respond to highly growing elements that is rapidly developing such alternative distribution (mainly bancassurance). Respond to alternative risk ‎transfer method and its’ lack of adaptation in our region, especially sidecard and SLI. Encourage M‎&A in the region for commercial strategic objective including runoff, hedge fund, economy of scale, market entry and capital adequacy. 426 March 2014THE DIRECTION OF INSURANCE REGULATION IN THE UAE AND THE ANTICIPATED CHALLENGES

THANK YOU Any Questions? 526 March 2014THE DIRECTION OF INSURANCE REGULATION IN THE UAE AND THE ANTICIPATED CHALLENGES