CMA discusses role of insurance in dealing with COVID-19

Muscat: The Sultanate, represented by the Capital Market Authority (CMA) took part in the meeting of the Union of Arab Insurance Supervisors via video-conferencing.
Ahmed bin Ali Al-Ma’amari, Vice President for Insurance Sector represented the CMA.
The meeting discussed a range of issues related to the regulation and development of the insurance industry in the Arab countries, besides the developments in the markets and the role of insurance in dealing with the COVID-19 epidemic.
The key subject was the recommendations of the work team related to discussing the mechanism for accepting Arab reinsurance companies in the Arab market. The team is chaired by the Sultanate, represented by the vice president for the insurance sector.
The team aims to address the challenges facing reinsurers in the region to enjoy a higher level of legislative and financial readiness to compete globally in the reinsurance processes and coverage of risks to enhance retention ratios.
The meeting discussed the output of the IFRC17 Committee, which was issued by the International Accounting Standards Board in 2017 related to insurance contracts, which will be implemented in 2021.
The meeting also discussed the developments related to constituting a work team to prepare and assemble joint initiatives to curb the consequences of the outbreak of coronavirus in the Arab insurance markets. In the technical aspect, the meeting discussed the digitalisation of the processes related to insurance contracts on the level of insurance companies and the regulation and supervision of insurance business.
The meeting also discussed the moves of the members in dealing with the COVID-19 and reviewed the steps taken to expand the health insurance to include the epidemic. It also reviewed the study by certain markets including the Sultanate to address the issue, which will be assessed after three months from implementation.
The members emphasised the importance of the insurance sector and the need to consolidate the efforts of the economic sectors together with the community and the government during the outbreak. They also underscored the efficiency and ability of the insurance markets and the safety and financial strength of the companies to discharge their obligations toward the customers.
The Union of Arab Insurance Supervisors aims to support and bolster the relations between insurance markets and commissions and to cement the cooperation among them to protect the interests of the members for the development of the Arab insurance industry.