UAE Mandates CII Advanced Diploma for Insurance Professionals

The UAE Central Bank has introduced new legislation requiring senior insurance representatives to hold professional qualifications. The legislation, titled ‘Insurance Brokers’ Regulation,’ specifically highlights the Chartered Insurance Institute (CII) Advanced Diploma as an example of the globally recognized qualifications that CEOs and other senior management are now mandated to possess. This development signifies a move toward greater professionalism and consumer protection within the UAE insurance sector.

Gaenor Jones, CII Middle East Regional Director, comments, "This will have a major impact on the sector’s credibility, with corporates and organisations’ senior teams now mandated to attain accredited qualifications which prove their robust knowledge and capabilities. This will instil essential confidence in end users, including consumers, who can be certain that the advice they are being given comes from an informed and technically competent individual who has studied for and attained the appropriate qualifications, such as those provided by the CII."

"We continue to work very closely with the central banks, not only in the UAE but across the Middle East and CSA region, to educate organisations about the importance of their employees pursuing and attaining internationally recognised qualifications."

Key Themes

• Mandatory Qualifications for Senior Insurance Professionals: The new legislation mandates that senior insurance personnel, including CEOs and similarly ranked management representatives, obtain accredited professional qualifications. Article 5 of the ‘Insurance Brokers’ Regulation’ specifically stipulates the need for professionals to meet specific qualifications, knowledge, experience, and demonstrate integrity, competence, and financial soundness.

• CII Advanced Diploma as an Exemplar: The UAE Central Bank explicitly cites the CII Advanced Diploma as an example of the internationally recognized qualifications that will meet the new regulatory requirements. This underscores the CII's reputation and the value placed on its qualifications within the UAE.
• Continuing Professional Development (CPD): The new regulations also address the importance of ongoing learning and development. The legislation outlines criteria for Continuing Professional Development (CPD), requiring a minimum of fifteen hours for Insurance Broker Representatives, Senior Management, and Specialised Employees. This ensures professionals remain up-to-date with industry developments.
• Boosting Credibility and Confidence: The legislation aims to enhance the credibility of the insurance sector and foster greater trust among consumers.
• Maturing Market and Future-Proofing the Sector: The CII views this development as a sign of a maturing insurance market in the UAE, ultimately benefiting both professionals and policyholders. Jones believes it will "future-proof the UAE insurance sector," enhancing "trust and confidence in the sector."
• Regional Collaboration: The CII emphasizes its close collaboration with central banks across the Middle East and CSA region to promote the importance of internationally recognized qualifications. They "continue to work very closely with the central banks, not only in the UAE but across the Middle East and CSA region, to educate organisations about the importance of their employees pursuing and attaining internationally recognised qualifications."
• Progressive Leadership: The CII sees the UAE's actions as leading the way for other nations in the region.

Implications:

• Increased demand for professional insurance qualifications, particularly the CII Advanced Diploma, within the UAE.
• UAE insurance companies will need to invest in training and development programs to ensure their senior staff meet the new requirements.
• Potential for similar regulations to be adopted by other countries in the Middle East and CSA region.
• Enhanced public trust in the UAE insurance sector.

iPMI Global CEO Christopher Knight concludes, “Firms will need to monitor the implementation and enforcement of the new regulations whilst assessing the impact on the demand for CII qualifications. Brokers can continue to engage with central banks and insurance companies in the region to promote professional standards.”