Within the GGC region, the regulation of insurance
intermediaries, and particularly their handling of client money,
has been relatively light. There have been some high profile cases
in the media in recent times that demonstrate the risks involved
with holding client money and how badly things can go wrong. There
are new developments in legislation within the GCC as regulators
begin to incorporate international practice into the local
regulations.
Current international practice requires insurance intermediaries
dealing with client money to hold such money in segregated
accounts, which are clearly and specifically separate from any
day-to-day operating accounts of the intermediary; one of the
protective measures for the ultimate insured. In this article we
provide a summary the proposed regulation for Bahrain and Saudi
Arabia and the existing regulation in place in the United Arab
Emirates. We also provide a high level review of what needs to be
in place to ensure
