Regulatory Alerts2025-12-05
Added · Updated
Updating the Regulatory Framework for Insurance in ADGM
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) proposes a comprehensive overhaul of its insurance and reinsurance regulatory framework to enhance capital efficiency, align with global standards, and foster market growth. The updated regime introduces a new ADGM Solvency Capital Requirement (ASCR) calculated through a Value-at-Risk standard formula or approved internal models, alongside a three-tier own funds structure and explicit recognition of diversification benefits. Additionally, the FSRA plans to expand permissible investments to include synthetic sidecars and insurance-linked securities while implementing principles-based group supervision and enhanced risk management reporting.