THE ARAB MONETARY FUND ORGANIZES A HIGH-LEVEL “REMOTELY” MEETING OF THE HEADS OF INSURANCE SUPERVISORY BODIES IN THE ARAB COUNTRIES الدول

by **claud39** Sun Jul 18, 2021 11:21 am

THE ARAB MONETARY FUND ORGANIZES A HIGH-LEVEL “REMOTELY” MEETING OF THE HEADS OF INSURANCE SUPERVISORY BODIES IN THE ARAB COUNTRIES الدول

2021-07-13

Tuesday, July 13, 2021

The people are discussing

The role of the regulatory authorities and the internal and external auditor in strengthening the governance of insurance companies شركات

The role of compliance and risk departments in insurance companies and the role of the board of directors in reducing risks

Conditions and criteria that must be met in the formation of the insurance company’s board of directors and its committees

Ways of exploitation of the insurance sector by perpetrators of financial crimes

The role of regulatory authorities in the reduction of financial crimes

Indicators of suspected money laundering and terrorist financing in the insurance sector

Ways to reduce the risks that may result from the use of modern financial technologies in the insurance sector

Implementation of an effective compliance and disclosure system within the regulatory environment to combat financial crimes

Today, Tuesday, July 13, 2021, the Arab Monetary Fund is organizing a high-level "remote" meeting of the heads of insurance supervisory bodies in the Arab countries, to discuss the governance procedures of insurance companies and the risks that they may face as a result of financial crimes. The meeting will be attended by a number of Their Excellencies, heads of bodies and departments concerned with insurance supervision in Arab countries, senior officials concerned with the insurance sector in Arab central banks, and representatives of international and regional institutions, led by the International Monetary Fund, the World Bank, the International Federation of Insurance Supervisory Bodies, the Swiss Insurance Institute, and units Financial investigations to combat money laundering and terrorist financing in the Arab countries, in addition to the employees of the Arab Monetary Fund.

The meeting will discuss the insurance companies’ governance procedures, including the role of the regulatory authorities and the internal and external auditor in enhancing governance, the conditions and standards that must be met in the formation of the insurance company’s board of directors and its committees, the adoption of limits of responsibility and accountability for all functional and administrative levels, the role of compliance and risk departments, and the role of the board of directors In limiting the risks that the company may be exposed to and in ensuring that the executive management addresses the weaknesses and observations contained in the internal and external audit reports, setting key performance indicators and evaluating institutional performance, and adopting internal control and control systems.

The discussion also addresses the risks that insurance companies may be exposed to as a result of financial crimes, including the ways in which the insurance sector is exploited by perpetrators of financial crimes, the role of the regulatory authorities in reducing them, the best practices for controlling insurance companies and the adequacy of their anti-money laundering and terrorist financing systems, And the role of the Board of Directors in adopting a comprehensive policy to combat financial crimes, ways to reduce risks that may result from the use of modern financial technologies in the insurance sector, challenges and legal, financial and reputational risks faced by the sector due to financial crimes, and ways and means of continuous development of insurance companies’ procedures for the “know your customer” system. By paying attention to the process of investigating customer data and linking it to the relevant authorities in the field of combating financial crimes, and the extent to which an effective compliance and disclosure system is implemented within the regulatory environment to combat financial crimes.

On this occasion, His Excellency the Director General and Chairman of the Board of Directors of the Fund, Dr. Abdul Rahman bin Abdullah Al-Hamidi, expressed his happiness with the continuation of the dialogue at the level of senior officials in the supervisory and supervisory authorities in the Arab countries on the insurance sector, with the participation of experts from local and international financial institutions and frameworks to discuss corporate governance. Insurance and combating financial crimes, wishing the two communities every success.

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%86%D8%B8%D9%85-%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9%D8%A7%D9%8B-%D8%B9%D8%A7%D9%84%D9%8A-%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D9%88%D9%89-%D8%B9%D9%86-%D8%A8%D8%B9%D8%AF-%D9%84%D8%B1%D8%A4%D8%B3%D8%A7%D8%A1-%D9%87%D9%8A%D8%A6%D8%A7%D8%AA-%D8%A7%D9%84%D8%A5%D8%B4%D8%B1%D8%A7%D9%81-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%D8%AA%D8%A3%D9%85%D9%8A%D9%86-%D9%81%D9%8A

by **claud39** Sun Jul 18, 2021 11:24 am

HIS EXCELLENCY DR. ABDULRAHMAN BIN ABDULLAH AL-HAMIDI, DIRECTOR GENERAL AND CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH AT THE HIGH-LEVEL MEETING ON THE GOVERNANCE OF INSURANCE COMPANIES AND THE FIGHT AGAINST FINANCIAL CRIMES

2021-07-13

$39.5 billion in total outstanding insurance premiums by the end of 2020

1.9 percent of GDP is the share of insurance premiums in Arab countries الدول

Emphasizing the importance of strengthening the governance of insurance companies to take advantage of the great opportunities for growth

The call for achieving a balance between stimulating the employment of modern technologies to increase access to
insurance services and the need to develop controls that help to guard against risks and financial crimes

His Excellency Dr. Abdulrahman bin Abdullah Al-Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, delivered a speech at the opening of the high-level meeting on the governance of insurance companies and the fight against financial crimes, organized by the Arab Monetary Fund "remotely", in the presence of senior officials in each of the insurance supervisory bodies, Central banks, financial information units, and insurance companies in the Arab countries. Experts from the Egmont Group, the International Monetary Fund, the Bank for International Settlements, the International Federation of Insurance Supervisory Bodies, as well as the Swiss Insurance Institute also participated in the meeting.

At the beginning of the speech, His Excellency praised the topics discussed by the meeting, indicating in this regard the importance of the issue of insurance company governance, which includes the role of regulatory authorities and internal and external auditors in strengthening governance, the conditions and standards that must be met in the formation of the insurance company’s board of directors and its committees, and the role of compliance and risk departments Setting key performance indicators and evaluating institutional performance, in addition to adopting internal control and control systems.

His Excellency Al-Hamidi also praised the second topic, which deals with the risks that insurance companies may be exposed to as a result of financial crimes, including the ways in which the insurance sector is exploited by perpetrators of financial crimes and the role of the regulatory authorities in limiting them, the best practices for controlling insurance companies and the adequacy of anti-money laundering systems Its financing of terrorism, the role of the Board of Directors in adopting a comprehensive policy to combat financial crimes, and ways to reduce the risks that may result from the use of modern financial technologies in the insurance sector, in addition to the challenges and legal, financial and reputational risks that the sector faces due to financial crimes.

His Excellency the Director General, Chairman of the Board of Directors of the Arab Monetary Fund, stressed the important role that the insurance sector plays in supporting the national economy in the Arab countries, noting in this regard that the insurance sector in the Arab countries has witnessed growth in recent years, noting that the total outstanding insurance premiums amounted to At the end of 2020, approximately $39.5 billion for all types of insurance, compared to $38.9 billion at the end of 2019. His Excellency also stressed the need for the insurance sector in the Arab countries to expand, reflecting the opportunities available for sector growth, indicating that insurance premiums do not It exceeds 1.9 percent of the gross domestic product of the Arab countries, which is less than the similar percentages of other regional groups, indicating that the market share of the insurance sector in the Arab countries represents 0.75 percent of the global insurance market, which is a small share compared to other groups.

On the other hand, His Excellency indicated that the application of sound governance practices in line with the best international standards helps enable the insurance sector in the Arab countries to achieve its great potential for growth, in addition to enhancing the confidence of dealers in the market and attracting more foreign investments.

His Excellency also referred to the opportunities offered by financial technologies and their various applications to insurance companies, noting at the same time the challenges that accompany them, which requires a balance between stimulating the employment of modern technologies to increase access to insurance services on the one hand, and the need to develop controls and tools that help hedge against new risks and crimes. which may arise from it on the other hand.

Finally, His Excellency Dr. Al-Hamidi affirmed the Arab Monetary Fund's interest in strengthening cooperation with insurance supervisory bodies to serve the development of the insurance sector in Arab countries and increasing its contribution to economic activity.

Here is the full text of the speech:

Your Excellencies,
Ladies and gentlemen, speakers and participants,
May God bless you with all the best and happiness, and we ask God Almighty to lift this epidemic from us and the countries of the whole world, and to protect the world from all harm

At the beginning of the speech, I am pleased to welcome you all from the insurance supervisory bodies, central banks, financial information units and insurance companies in the Arab countries, as well as representatives of financial institutions and relevant international bodies, as well as eminent experts, who are all attending this high-level meeting on “Corporate Governance.” Insurance and combating financial crimes. This meeting is part of a series of consultations that the Arab Monetary Fund has been conducting among policy makers in the insurance sector in the Arab region since October 2020.

I would also like to thank the International Monetary Fund, the Bank for International Settlements, the International Federation of Insurance Supervisory Authorities, the Egmont Group, the Swiss Insurance Institute, central banks and financial intelligence units to combat money laundering and terrorist financing in the Arab countries.

Ladies and gentlemen in attendance,

Today’s meeting deals with the topic of “governance of insurance companies”, including the role of regulatory authorities and the internal and external auditor in enhancing governance, the conditions and standards that must be met in the formation of the insurance company’s board of directors and its committees, the adoption of limits of responsibility and accountability for all functional and administrative levels, and the role of compliance and risk departments And the role of the Board of Directors in reducing the risks that the company may be exposed to and in ensuring that the executive management addresses the weaknesses and observations contained in the internal and external audit reports, and sets key performance indicators and evaluation of institutional performance, in addition to adopting internal control and control systems.

It also deals with the topic of "risks that insurance companies may be exposed to as a result of financial crimes", including ways of exploitation of the insurance sector by perpetrators of financial crimes and the role of regulatory authorities in reducing them, best practices for controlling insurance companies and the adequacy of their anti-money laundering and terrorist financing systems The role of the Board of Directors in adopting a comprehensive policy to combat financial crimes, ways to reduce risks that may result from the use of modern financial technologies in the insurance sector, the challenges and legal, financial and reputational risks that the sector faces due to financial crimes, and ways and means for the continuous development of insurance companies’ procedures for the “know your customer” system. “, by paying attention to the process of investigating customer data and linking it to the relevant authorities in the field of combating financial crimes, in addition to the extent to which an effective compliance and disclosure system is implemented within the regulatory environment to combat financial crimes.

Ladies and gentlemen in attendance,

As you know, the supervisory authorities in the Arab countries face challenges regarding the development of the non-bank financial sector and raising awareness of its importance and understanding its risks, especially the insurance sector, which is considered an important element in enhancing financial stability, as its role is to protect individuals and property from risks, in addition to accumulating and developing national savings. To promote economic development. In the Arab countries, the insurance sector plays an important role in supporting the national economy as it is one of the most important sectors of non-banking financial services, as it contributes to supporting economic activities and maintaining their stability.

The insurance sector in the Arab countries has witnessed growth in recent years, coinciding with the developments taking place in the economies of the Arab region, which enhance the need for insurance services. The total outstanding insurance premiums at the end of 2020 amounted to approximately $39.5 billion for all types of conventional and Islamic insurance, compared to $38.9 billion. at the end of 2019.

Despite the growth recorded in the existing balance of insurance premiums, it still needs to expand, reflecting the opportunities available for the growth of the sector, as these premiums do not exceed about 1.9 percent of the gross domestic product of Arab countries, which is less than similar rates for regional groups. other. Also, the market share of the insurance sector in the Arab countries represents 0.75 percent of the global insurance market, which is a modest share when compared to the market shares of other regions, which reflects the importance of the supervisory authorities in the Arab countries to continue their efforts to develop this sector .

Ladies and gentlemen in attendance,

There is no doubt that the application of sound governance practices in line with the best international standards, including the principles of the International Association of Insurance Supervisory Bodies, helps in enabling the insurance sector in our Arab countries to achieve its great potential for growth . The application of controls also enhances the confidence of dealers in the market and attracts more foreign investments, and this has been proven by many studies in all markets that apply corporate governance, in addition to the role of this in increasing credibility and transparency in these markets . The application of governance in insurance companies occupies an important privacy, as it seeks to protect the rights of policyholders and beneficiaries, in addition to protecting shareholders and other related parties.

It is no secret to you that the insurance market relies to a large extent on having a foundation of trust and a good reputation. The crises have shown that these two elements take a great deal of time and effort to establish, but that they can be lost in a very short time. Therefore, it is very important for the insurance sector in the Arab region to build a strong culture of trust and transparency by raising standards of governance. Many international studies, and in our Arab region as well, indicate that the improvement in the financial performance of a number of insurance companies came as a result of applying effective governance to insurance companies, which leads to an increase in transparency and confidence that is reflected in the company's financial performance .

On the other hand, various types of financial crimes are more influential and more dangerous to the safety and efficiency of the financial sector and its ability to finance, and undermine opportunities for economic growth, especially at the present time in light of the rapid progress in the applications of modern technologies and the expansion of electronic commerce activities and cross-border financial operations, and thus The globalization of financial crimes and the evolution of their forms and patterns.

Ladies and gentlemen in attendance,

Financial technologies and their various applications present opportunities and challenges for insurance companies, as the nature and scope of financial risks, as traditionally understood, have changed dramatically as a result of the increasing reliance on modern technologies, which requires taking into account the balance between stimulating the employment of modern technologies to increase access to insurance services on the one hand, and the need on the one hand. Others to develop controls and tools that help to guard against risks and crimes that may arise from them .

Through the workshop today, we look forward to working to shed light on the risks faced by insurance companies, as a result of committing financial crimes and their impact on the stability of financial systems, and the best ways to increase the effectiveness of combating them, especially in light of innovations and modern financial technologies and the impact of the Corona pandemic on financial crimes, in an effort to achieve balance as She mentioned between developing innovations in the insurance sector, promoting compliance with legislation and controls and ensuring data protection in these companies and cyber security.

I do not want to prolong your stay. I wish the meeting success, looking forward to the continued cooperation of the Arab Monetary Fund with insurance supervisory bodies and financial information units, in order to serve the development of the insurance sector in the Arab countries and increase its contribution to economic activity. I also look forward to welcoming you to Abu Dhabi on future occasions.

Finally, I would like to thank the United Arab Emirates for the great care and support it provides as the headquarters country of the Arab Monetary Fund, which undoubtedly contributes to the Fund's carrying out the tasks entrusted to it.

Peace, mercy and blessings of God,,

https://www.amf.org.ae/ar/content/%D9%85%D8%B9%D8%A7%D9%84%D9%8A-%D8%A7%D9%84%D8%AF%D9%83%D8%AA%D9%88%D8%B1-%D8%B9%D8%A8%D8%AF%D8%A7%D9%84%D8%B1%D8%AD%D9%85%D9%86-%D8%A8%D9%86-%D8%B9%D8%A8%D8%AF%D8%A7%D9%84%D9%84%D9%87-%D8%A7%D9%84%D8%AD%D9%85%D9%8A%D8%AF%D9%8A-%D8%A7%D9%84%D9%85%D8%AF%D9%8A%D8%B1-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%B1%D8%A6%D9%8A%D8%B3-%D9%85%D8%AC%D9%84%D8%B3-%D8%A5%D8%AF%D8%A7%D8%B1%D8%A9-%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-55