Friends Provident International (FPI) has launched two revised BOD49-compliant products as the Insurance Authority’s UAE commission capping legislation comes into force.
This news comes several weeks after RL360’s parent group International Financial Group Limited (IFGL) announced the completion of the acquisition of FPI.
The Insurance Authority Board of Directors’ Decision No (49) of 2019 Concerning Instructions for Life Insurance and Family Takaful Insurance, better known as BOD49, introduces a range of requirements for life insurance providers and advisers who sell their products.
FPIL’s revised products will be known as Reserve + and International Protector Middle East + (IPME +).
They replace the existing Reserve and IPME products.
Details
The funds will now consist of:
Reserve +
- Reduced premium – Non-discretionary plans
- Revised charge structures, removal of annual policy charge option;
- Clean share classes of underlying funds only;
- Full disclosure of all product and underlying investment charges on illustrations; and
- Illustration detailing surrender values and plan charges.
IPME +
- Removal of policy terms of less than five years;
- Accelerated premium payment options;
- Illustration detailing policy charges; and
- Reduced premium rates for all insurance coverages.
Better outcomes
Stuart Shilcock, head of sales at FPI, said: “We welcome the introduction of the BOD49 regulations, which will bring about a lot of change for the UAE insurance sector.
“The transitional period will not be without its challenges but, ultimately, the regulations will mean better outcomes and even greater protection for our policyholders.
“It’s also an opportunity for advisers to write even better and more persistent business.”
