Friday 29 May 2009

EU Solvency II rules to alter insurance policies in UAE

Insurance companies in the UAE are gearing up to implement Solvency II capital adequacy rules approved by the European Parliament.

The rules will limit the amount of risk that insurance and reinsurance companies can undertake in relation to their capital bases. The rules are due to be implemented by 2012 and will set a new regulatory standard for insurance companies across the world. Industry sources said the rules could lead to major changes in the UAE.

Many insurance companies in the Middle East are monitored by credit rating agencies such as Moody's and Standard & Poor's. As Dubai is trying to become a global financial centre, insurance companies here are watching the Solvency II developments closely.

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