CBUAE Standards re Enterprise Risk Management for Solvency Purposes for Insurance Companies

Table of contents

Introduction

The Central Bank of the UAE has issued the Risk Management and Internal Controls Regulation and Standards for Insurance Companies (Circular No. 25/2022), the Corporate Governance Regulation and Standards for Insurance Companies (Circular No. 24/2022) the Recovery Planning Regulation (Circular 4/2023), the Insurance Group Supervision Regulation (Circular 4/2025), Decision No. (25) of 2014 Pertinent to Financial Regulations for Companies and Decision No. (26) of 2014 Pertinent to Financial Regulations for Takaful Companies collectively referred to in these Standards as the “Relevant Regulations”. These “Relevant Regulations” introduced a comprehensive regulatory approach to Risk Management, including a requirement that Companies must have robust systems to identify, assess, measure, monitor, control and mitigate material sources of risk on a timely basis. Moreover, the “Relevant Regulations” require Companies to submit their Own Risk and Solvency Assessment (ORSA) at least annually in order to:

• assess the ad...