1-2

The Board and Senior Management are responsible for ensuring that financial statements are:

a.

prepared in accordance with accounting policies and practices that are widely accepted internationally;

b.

supported by record keeping systems; and

c.

issued annually to the public together with an independent External Auditor’s opinion.

2-2

The Board audit committee must oversee the financial reporting process and the establishment or amendment of significant accounting policies and practices.

3-2

In addition to the reporting requirements per the Financial Regulations, a Company must provide the Central Bank with qualitative and quantitative reports in an easily accessible manner with the following information, at a minimum:

a.

a description of the nature of the Company’s activities which sets out the following:

i.

business lines, types of products offered, policyholder segments and location of business;

ii.

policies concerning sales, marketing and remuneration paid to intermediaries;

iii.

the main trends and factors that contribute to the development, performance and position of the Company over its business planning time period; and

iv.

any material changes that have occurred in the Company’s activities.

b.

a description of the Company’s undertakings to ensure fair treatment of policyholders, which sets out the following:

i.

the culture of the Company in relation to policyholder treatment, including the extent to which the Company’s leadership, governance, performance management and recruitment, complaints handling policies and remuneration practices demonstrate a culture of fair treatment to policyholders;

ii.

how products are designed and distributed to ensure they fulfil the customers’ demands and needs;

iii.

the adequacy, appropriateness and timeliness of the information and advice given to customers;

iv.

the handling and timing of claims, including but not limited to acknowledging receipt of claims, notifying policyholders of accepting claims, rejecting claims or requiring additional documentation to proceed;

v.

 premium refunds;

vi.

the handling, frequency and nature of customer complaints, disputes, and litigation;

vii.

means of communication used to address customer complaints, including but not limited to SMS text messages, telephone, email or social media platforms and the frequency of their update;

viii.

policyholder experience reports used by the Company or from other sources, such as the insurance disputes resolution committees/ courts of law/ ombudsman/ arbitration/ mediation, as the case may be; and

ix.

any material changes that have occurred in the Company towards fair treatment of policyholders.

c.

a description of the Corporate Governance framework, Risk Management system and Conflict of Interest policies - including those from the Company’s relations with policyholders-, and any material changes in this regard.

d.

at the Group level -where applicable- a description of the Company’s relationships within the Group, including Group structures, Intragroup Transactions and intragroup links along with a description of any material changes in this regard;

4-2

 The Central Bank will determine the frequency and deadlines of submitting reports according to Article (2.3). The Central Bank may require additional reports as it deems necessary.

5-2

Companies must correct inaccurate reporting, as soon as possible, once identified.

6-2

Companies must report on any material changes or incidents that could affect their condition or customers, a soon as possible.

7-2

Companies must refrain from any action that may disclose or reveal their intentions regarding distribution or repatriation of profits, retained earnings, reserves, or other component of regulatory capital, unless they first have obtained the prior written no-objection from the Central Bank.

8-2

Companies must not make any distribution or repatriation of profits, retained earnings, reserves, or other component of regulatory capital unless they have obtained the prior written no-objection from the Central Bank.

9-2

The Board is responsible for ensuring that the risk governance framework of the Company, and if applicable, Group, provides for appropriate oversight of financial reporting and external audit. The framework must, at a minimum, provide for:

a.

documentation in an appropriate mandate or terms of reference of the role and responsibility of the Board audit committee, with respect to financial reporting; and

b.

Board-approved policies, procedures, systems, internal controls and independent assurance by the internal and/or external audit functions of the Company on the preparation of financial statements and prudential reporting to the Central Bank.

10-2

Companies must prepare their financial statements in accordance with the International Financial Reporting Standards (IFRS) and the instructions of the Central Bank. Such instructions may include, but are not limited to, the submission and publication of financial statements, classification and provisioning of financial items or guidance on the application of specific IFRS in the UAE insurance sector.

11-2

Companies must use valuation practices consistent with IFRS and Financial Regulations, and subject their fair value estimation framework, structure and processes to independent verification and validation. The Board must ensure adequate governance structures and control process for all financial instruments that are measured at fair value for Risk Management and financial reporting purposes, which must include:

a.

reviewing and approving written policies related to fair valuations;

b.

ongoing review of significant valuation model performance for issues escalated for resolution and all significant changes to valuation policies;

c.

ensuring adequate resources are devoted to the valuation process;

d.

articulating the Company’s tolerance for exposures subject to valuation uncertainty and monitoring compliance with the Board’s overall policy settings at an aggregate Company-wide level;

e.

ensuring independence in the valuation process between risk taking and control units, including but not limited to dual signatures, “four eyes principle” and segregation of duties;

f.

ensuring the appropriate internal and external audit coverage of fair valuations and related processes and controls;

g.

ensuring the consistent application of accounting and disclosures;

h.

ensuring the identification of significant differences, if any, between accounting and Risk Management measurements, and that these are well documented and monitored; and

i.

ensuring that the External Auditor’s reservations are attended to, and that all necessary amendments and remedial action is being taken prior to the issuance of the annual financial statements and audit opinion, this includes but not limited to reservations towards valuation of real estate and any other assets, as determined by the Central Bank.