CMA  Inks MOU with Tunisian Insurance Authority

To enhance the cooperation between the Sultanate and the Republic of Tunisia in the field of exchange of information and regulation and supervision of the insurance sector HE Sheikh  Abdullah Salim Al Salmi, Executive President of the Capital Market Authority  and Mr. Hafidh Al Garbi, President of the Tunisian Insurance Authority  have signed a memorandum of understanding  in the city of Tunis  on the sidelines of the meeting of the members of Arab Forum of Insurance Regulators and Supervisors A(AFIRC 2016).

The Sultanate’s delegation was chaired by HE the Executive President and comprised Mr. Ahmed Ali Al Mamaari, Director General of Insurance Supervision .

The MOU  aims at achieving mutual cooperation between the two countries to promote the insurance industry as it provides for encouraging the exchange of information on the implementation of  laws and regulations pertaining to insurance supervision and the related aspects, setting  high standards for fairness and soundness to enhance the efficiency of the licensed entities in the insurance sector as well as exchange of expertise, research and studies relating to insurance, capacity building,  human resources development to improve the legal structures  in addition to cooperation  in taking  procedures against any unsound practices or fraud in the insurance sector in the two countries, exchange  of information regarding  potential breach of the applicable laws and regulations to allow for unified insurance coverage which would increase and support movement of person, funds and goods between the two countries.

The MOU also provides for  establishment of joint companies in insurance and reinsurance  to facilitate insurance business and investment, enhancing coordination of the positions of the two parties  with regard to  their membership in  international organizations of insurance in addition to cooperation in the field of training  and exchange of expertise and research.

CMA endeavors through conclusion of MOUs  to benefit from the practical experience of the sisterly and friendly countries in the field of insurance to  upgrade the practices in the local market. The insurance sector has grown by 14% in the past seven years to about RO 440 million.

The Third  AFIRC was held under the theme “ Development of Insurance Industry in the Middle East and North Africa: Requirements and Methods”.

CMA participated  on a discussion workshop on the requirements of governance and  risk assessment.

Al Maamari pointed out  that regulatory  change and poor management of insurance operation is the greatest challenge facing the insurance industry in the regions.

He said there are plans in place for risk management and early warning system to move to regulatory regimes based on  international principles and standards to protect the rights of stakeholders and cooperation between the regulators and insurers for innovative  and advanced insurance industry.