Regulatory Alerts2018-07-23
Insurance Authority Board Decision No. 14 of 2018 on Financial Solvency for Foreign Insurance Branches
The Insurance Authority of the United Arab Emirates issued Decision No. 14 of 2018 to establish specific financial solvency requirements for branches of foreign insurance and Takaful companies operating in the State. The regulation mandates that these branches calculate net assets based on their parent company's financials and submit annual solvency margin calculations, financial statements, and auditor reports to the Authority. Furthermore, branches must maintain sufficient admissible assets to cover local liabilities and utilize approved mechanisms such as fund transfers or bank guarantees to ensure adequate capital availability.
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