Dr. Mohammed al-Hussein, Minister of finance, issued the decision No.127/100 that includes a regulation for institutional arbitration in the insurance and re-insurance companies in the Syrian Market. In his comment, Dr. al-Hussein said that the Commission wants this regulation to be encouraging factor to establish a transparent and effective insurance Market, and to be an ideal for other sectors in financial services.... Click more
The Insurance Supervision Commission issued on Thursday 18/10/2007 a regulation for institutional arbitration in the insurance and re-insurance companies in the Syrian market. Concerning this matter, Dr. Mohammed al-Hussein, minister of finance; Chairman of Insurance Supervision Commission, issued the decision No.127/100, after preparing the draft resolution by the Commission before few months, then sent it to the Syrian Union of insurance companies and to the related bodies to acknowledge and put their remarks about it (so the Commission toke these remarks into consideration before issuing the final regulation).
As for the board of insurance companies, the regulation stipulated that most of board’s members should be from the non-executive members, the member shouldn’t hold tow position together (Executive Director or General Director and Chairman), and at least, one third of board’s members should be independent members. The board should nominate the members who are responsible of submitting the annual report of general Commission, the members also should have the sufficient experience of company’s activity, and shouldn’t be members in other company’s board.
After setting the tasks and authorities, the regulation obliged the board to adopt and review the company’s polices and planes, and adopt policy and regulations of administrating the subscription risks, administrating the arrears and re-insurance. Also the board should adopt the policies of subscription, pricing, marketing and commissions, and adopt particular bases to check and review the working process.
The regulation considered the Executive Management of company is responsible of supervising the company’s activity, achieving targets, supplying information, submitting reports. The management should commit with Commission’s decrees, regulations and instructions, and commit with career’s morals.
The regulation stipulated that the General Director should have good qualifications, experience and shouldn’t hold tow functions together. Also the regulation obliged the company to have an Internal Supervision System to agree with the company’s size and activities, and guarantee an internal and external audit in the company. This system should provide an internal supervision environment according to regulative and administrative framework, also it should be responsible of position description, issuing the company’s manual and distinguishing the responsibilities.
As well as, the regulation defined the conditions of audit committee concerning the members’ number, experiences, its tasks, its meeting mechanism and its achievements. The Committee should make sure of achieving a comprehensive external audit, accuracy of financial and accounting measures, undertaking to laws, review financial statements. The Committee is also responsible of supervising the internal auditor, meeting with external auditor, and approved on his nomination or resignation. Moreover, nominating the internal auditor by the board, defining his job’s nature, his duties and his rights.
In his comment, Dr. al-Hussein said that the Commission wants this regulation to be encouraging factor to establish a transparent and effective insurance Market, and to be an ideal for other sectors in financial services.
