In the vibrant landscape of the United Arab Emirates, the spectrum of insurance available in UAE plays a pivotal role in safeguarding individuals and businesses from unforeseen risks. This comprehensive array of insurance available in UAE encompasses a diverse range of coverage options, providing protection against various uncertainties.
As we embark on this exploration, our focus will be on unraveling the intricacies of the insurance landscape, emphasizing the importance of the different types of insurance available and their significant role in mitigating risks and ensuring financial security. Join us on this insightful journey as we delve into the dynamic and essential world of insurance available in UAE, recognizing its fundamental role in fostering resilience and stability within the community.
Explore a range of insurance available in UAE for your protection and peace of mind. Explore information on the various insurance options accessible in the UAE and the associated legal regulations.
Insurance Available in UAE
Overseer of the Insurance Sector
The Central Bank of the UAE (CBUAE) serves as the regulatory authority for the insurance sector, having absorbed the responsibilities of the Insurance Authority through Decretal Federal Law No. 25 of 2020. Consequently, all the guidelines, decisions, circulars, and regulations previously issued by the former ‘Insurance Authority’ in accordance with Federal Law No. 6 of 2007 will remain in effect for all licensed entities and operations until they are supplanted by CBUAE regulations.
Granting Licenses to Insurance Firms
CBUAE oversees the registration and licensing of insurance companies operating within the UAE.
Insurance entities in the UAE encompass domestic, international, and Takaful insurers. Foreign insurance firms can seek approval for operations in the UAE through the establishment of branch offices or by partnering with insurance agents.
To qualify for a license, an insurance company is mandated to maintain a paid-up capital not less than AED 100 million or its equivalent. Additionally, the company must furnish a bank deposit of AED 6 million for property and liability insurance and AED 4 million for personal insurance and funds-building operations.
For further information on licensing prerequisites or to inquire about specific fees associated with different types of insurance licenses, please contact CBUAE via email.
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Types of Insurance available in UAE
Various insurance options are available in the UAE, including:
- Life insurance
- Health insurance
- Property insurance (covering motor, fire, and marine)
- Liability insurance (encompassing third-party liability for vehicles, personal accident insurance, employer liability insurance, insurance for trains, and insurance for cash).
Insurance Brokers
An insurance broker is an individual who acts independently to facilitate insurance transactions between an insurance seeker and an insurance company, earning commissions from the insurance companies for their services.
Key requirements for obtaining a license as an insurance broker include:
- UAE nationals must hold at least 51 percent ownership in the company.
- The company’s paid-up capital must be a minimum of AED 3 million.
- Furnishing a bank guarantee with a value of AED 3 million for the Head Office, issued by one of the licensed banks operating within the UAE, and a bank guarantee of AED 1 million for branches is mandatory
Insurance Agents
Insurance agents encompass both entities and individuals authorized by a UAE-licensed insurance company to conduct insurance operations either on its behalf or on behalf of any of its branches.
The prerequisites for registering as insurance agents include a minimum paid-up capital of AED 500,000, fully owned by UAE nationals. Banks operating under UAE licenses are exempt from this capital requirement, and exemptions may be granted to other companies based on considerations related to public interest.
Regarding TPA Companies (Health Insurance Third Party Administrators), their activities are limited to:
- Managing claims arising from health insurance.
- Processing claims on behalf of the insurance company.
- Administering approved health insurance programs for the insurance company.
- Engaging in agreements with medical treatment service providers on behalf of the insurance company.
- Designing health insurance packages without engaging in their marketing or sale.
- Establishing a network of service providers.
- Providing advisory services during the subscription process.
For TPA companies, the capital requirement is a minimum of AED 5 million, with 51 percent ownership by UAE nationals. Additionally, the company is obligated to furnish a bank guarantee valued at AED 1 million issued by a UAE-licensed bank.
Insurance Consultants
Insurance consultants encompass both entities and individuals who assess the insurance needs of their clients, offer guidance on suitable insurance coverage, aid in the preparation of insurance documentation, and receive compensation from their clients for their services.
To be included in the ‘Insurance Consultants Register,’ registration must be sought by one of the partners or a responsible employee, as appropriate. Additionally, the company is obligated to furnish an insurance policy valued at AED 3 million, with the liability amount in the policy not exceeding AED 30,000. Furthermore, 51 percent of the company’s capital must be owned by UAE nationals.
Actuary
Actuarial firms and individuals in this field specialize in assessing the value of insurance contracts and associated records and accounts.
For actuarial companies incorporated in the UAE, the minimum required paid-up capital is AED 100,000. Meanwhile, companies incorporated in a financial free zone within the UAE or foreign companies must maintain a paid-up capital of AED 250,000 or its equivalent.
Prices comparison websites
Numerous companies are registered to offer online insurance policy price comparisons.
However, insurance companies and insurance-related professionals, with the exception of insurance brokers, are barred from engaging with price comparison websites. Conversely, these price comparison platforms are prohibited from directly communicating with customers. Any such interaction must exclusively occur through a licensed insurance broker affiliated with the website.
Insurance producers
Insurance producers promote insurance policies by connecting individuals and businesses with the insurance company they represent, showcasing the array of insurance services, products, and special offers. This promotional activity is typically conducted via conventional or digital methods, such as placing company links on their online profiles or sharing them on social media platforms.
Insurance Guidelines
Discover insurance regulations pertaining to the following areas:
- Insurance consultancy
- Insurance actuary
- Minimum capital regulations
- Fees for supervision
- Code of conduct and ethics
- Takaful insurance
- Surveyors and loss adjusters
- Insurance agents’ business
- Health insurance licensing (third-party administrator-TPA)
- Insurance brokerage
- Motor insurance
- Financial regulations
- Points of sale
- Reinsurance
- Electronic insurance
- Sanctions
- Bank assurance
- Insurance disputes committees
- Sandbox
- Life insurance
- Insurance policy language
- Insurance producers
- Tax compliance
- FATCA
- Common reporting standards
- Financial regulations/Takaful.
CBUAE Rulebook
The CBUAE Rulebook serves as a repository for regulations, standards, and guidelines promulgated by the Central Bank of the UAE. Its purpose is to offer convenient access to compliance-related materials, facilitating awareness among individuals and businesses operating in the financial sector.
Related eServices
- Filing an Insurance-related complaint
- Study licensing a foreign insurance company
- Study licensing national or GCC insurance company
- Apply for a foreign insurance company licence
- Apply for a Takaful insurance company license (national, Gulf and foreign)
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