Ahmad Alrazni Alshammari, Basheer Hussein Motawe Altarturi
This paper reviews the insurance regulatory framework in the Gulf region, with a focus on conduct of business regulations. The paper also looks at the impact of the COVID-19 pandemic, which has impacted the insurance business and caused disruptions in its operations. In shifting their attention on business survival and pandemic management, insurance providers may have put less priority on their activities that ensure fair treatment of customers. The paper is built around two objectives: 1) to assess the conduct of business insurance regulation in the Gulf region against the best practices; and 2) to identify the supervisory measures taken by the Gulf regulatory and supervisory authorities (RSAs) to confront the outbreak of COVID-19 pandemic, with focus on conduct of business. The International Association of Insurance Supervisors (IAIS) and the Islamic Financial Services Board (IFSB) are adopted in the research to derive the core criteria of the best practice and then compared against the GCC insurance legislations. It was found that while five GCC countries have in place requirements pertaining to conduct of business, one country does not. Takaful conduct of business is also an area that could be improved, in particular with regard to ongoing disclosure of information during the contract period. In relation to COVID-19, RSAs have issued various insurance supervisory measures that promote fair treatment of customers, e.g., extension of the policy coverage and confirming the policy wording of a health policy. Four RSAs (UAE, Saudi Arabia, Oman and Qatar), is seen actively publishing materials to ensure both the industry’s stability and consumer protection. Maintaining consumer protection is a key responsibility for any regulator, and intervention in uncertain times goes a long way in ensuring fair treatment of customers.