The cabinet of the United Arab Emirates recently resolved to grant insurance companies operating in the combined business of insurance of persons and fund accumulation operations, along with property and liability insurance, an extra year to comply with an age-old law.

The period of one year started on 28 August and the aim is for companies to obey the provisions of Article No 25 of the Federal Law No (6) of 2007 concerning the Establishment of the Insurance Authority and Regulation of Insurance Business. Clause 1 bans the combination of insurance for persons and fund accumulation operations and property and liability insurance operations. Clause 2 gives companies five years to comply after the coming-into-force of the law, extendable by a resolution of the UAE cabinet. Clause 3 gives the Insurance Authority board of directors the power to regulate each class of insurance.

The chairman of the Insurance Authority, himself a member of the cabinet, said that the decision to grant an additional period of one year "following many other previous opportunities" was intended to "improve the performance" of home-grown insurance companies.

The Insurance Authority's annual report for this year says that the number of insurers of persons and fund accumulation operations, along with property and liability insurance, amounts to 13 companies, including 11 domestic ones and two foreign ones, while the number of companies engaged in property and liability insurance classes only are 20 domestic and 17 foreign. Those companies that insure of persons and fund accumulation operations only number two domestic and 8 foreign.