The regulatory authorities required to step up efforts

According to Standard and Poor’s (S&P), the insurance supervisory authorities in the Gulf countries are required to set up more sophisticated and larger supervisory tools.

This recommendation emanates from a report published and entitled “GCC Insurance Regulation: Companies and Regulators will both have to step up their games”. The rating agency has also noted that the willingness to implement the new legislative rules is not the same throughout the region.

The trend is rather for the establishment of standards already adopted in mature markets. These standards pertain to rules of solvency and capital-risk management.

S&P has pointed its finger on the failures regarding monitoring solvency, auditing technical reserves and risk management. Ultimately, still according to S&P recourse to external audit is not yet systematic.