The Capital Market Authority organized a workshop on Wednesday to review the directives for insurance products and approval mechanism attended by representatives of national and foreign insurance companies operating in the Sultanate as a prelude for implementation of the updated directives.
The workshop highlighted the key legal requirements from insurers on application for approval of products to ease the procedures. The insurance products are the tangible and intangible benefits contained in the insurance policy to meet the needs and desires of the insured and the related services.
Rashid Mohammed Al Rashdi, Director of the Department of Requirements and Licensing of insurance institutions said in speech that CMA’s efforts during the past period were focused on reviewing the rules regulating the marketing of insurance products and to create new directives for the marketing process in line with the developments and changes taking into account the technical and legal requirements for marketing each product. The new rules include classification of products according to types i.e. life/general/Takaful.
He added the procedures and mechanisms required from insurance companies were updated to be compatible with the legislations governing the insurance sector. Al Rashdi emphasized the importance of the new directives and expressed hope they would enhance competition and innovation among insurers.
He said the key objects to be achieved from the amendments of the applicable rules inventory of the types of insurance products to describe the approval processes including but not limited to meeting all the requirements and documents relating to the specifications of the product in addition to pricing policy compatible with the approved underwriting and pricing policy by the board of directors of the company, and certified by the actuary and the Sharia Supervisory Board for Takaful products.
The workshop was presented by actuaries who reviewed the requirements for approval of insurance products to ensure taking steps that would save time and efforts and meeting all the requirements which ease the procedures for reviewing the application.
The directives for approval of insurance products contain a list of requirements including but not limited to obtaining CMA’s approval after consideration and evaluation of the application to see if meeting all legal requirements set for the business of insurers, the product policy must be written in Arabic or accompanied by true translation. The product must be compatible with laws and regulations of the insurance sector and the requirements of the Code of Conduct for Insurance Companies. The product must be designed based on proper insurance principles. The insured risks under the policy must be clear and transparent with no ambiguity. All the printed material must be in simple and clear language. All technical terminology must be explained in simple language in addition to fairness in the terms and conditions concluded between the insurer and the insured.