Regulatory Alerts2022-12-30
Risk Management and Internal Controls Standards for Insurance Companies
The Central Bank of the United Arab Emirates issued these mandatory standards to require insurance companies to implement comprehensive risk management and internal control systems tailored to their specific risk profiles. The regulations mandate a three-lines-of-defense framework where the Board holds ultimate responsibility for establishing risk culture, defining risk appetite, and overseeing independent control functions including risk management, compliance, actuarial, and internal audit. Insurers must continuously identify, assess, and mitigate material risks through robust policies, stress testing, and regular reporting to ensure solvency and adherence to regulatory obligations.
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