Regulation plays a critical role in creating an enabling environment for financial service providers whilst ensuring the interest of clients are protected for financial products like Insurance Business.
In recognising the importance of effective regulation and supervision to develop sustainable insurance markets in the AIFC, AFSA has developed world-class regulation on Insurance Business. The Centre participants are able to obtain the Insurance Business Licenses in different aspects such as: monetary, legal, transport, physical and materialistic.
- Insurance Intermediation (1) Insurance Intermediation means:
(a) advising on a Contract of Insurance;
(b) acting as agent for another Person in relation to the buying or selling of a Contract of Insurance for that other Person; or
(c) making arrangements with a view to another Person, whether as principal or agent, buying a Contract of Insurance.
(2) In (1)(a), ‘advising’ means giving advice to a Person in his capacity as a Policyholder, or in his capacity as agent for a Policyholder on the merits of his entering into a Contract of Insurance whether as principal or agent.
(3) In (2), ‘advice’ includes a statement, opinion or report:
(a) where the intention is to influence a Person, in making a decision, to select a Contract of Insurance or insurance cover; or
(b) which could reasonably be regarded as being intended to have such influence.
(4) The arrangements in (1)(c) include arrangements which do not bring about the transaction.
(5) The arrangements in (1)(c) do not include the mere provision of information about:
(a) a Contract of Insurance, insurer, insurance intermediary or insurance manager to a Policyholder; or
(b) a Policyholder to an insurer, insurance intermediary or insurance manager, if the Person providing that information does not take any further steps to assist in concluding the Contract of Insurance.
- Effecting Contracts of Insurance Effecting Contracts of Insurance means effecting Contracts of Insurance as Principal.
- Carrying on Contracts of Insurance Carrying on Contracts of Insurance means carrying on Contracts of Insurance as Principal.
- Insurance Management (1) Insurance Management means:
(a) performing underwriting or administration functions for or on behalf of an insurer or Captive, for the purposes of that insurer effecting or carrying out a Contract of Insurance as principal; or
(b) arranging reinsurance for and on behalf of an insurer or Captive for whom it is underwriting;
(c) performing underwriting or administration functions for or on behalf of a Takaful Operator or a Captive Takaful Operator, for the purposes of that Takaful Operator effecting or carrying out a Takaful Contract as principal; or
(d) arranging Retakaful for and on behalf of a Takaful Operator or Captive for whom it is underwriting.
(2) In (1):
(a) “administration” includes, without limitation, one or more of the following activities:
(i) processing applications for, and endorsements on, Contracts of Insurance;
(ii) collecting and processing premiums or Takaful contributions;
(iii) negotiating terms of settlement of claims; or
(iv) settling claims; and
(b) “underwriting” includes, without limitation, one or more of the following activities:
(i) assessing underwriting risks;
(ii) negotiating and settling terms of Contracts of Insurance or terms of Takaful Contracts, including exclusions;
(iii) negotiating and settling premiums or Takaful contributions;
(iv) negotiating commissions; or
(v) countersigning, stamping and issuing Contracts of Insurance or Takaful Contracts.
(3) In this Rule, a reference to an “insurer” is a reference to:
(a) an Insurer; or
(b) a Non-AIFC insurer.
(4) In this Rule, a reference to a “Takaful Operator” is a reference to:
(a) a Takaful Operator; or
(b) a Non-AIFC Takaful Operator.