- Customers must make direct payments to insurers instead of brokers.
- Insurers must directly process claim payouts and refunds.
- Brokers will receive commissions within 10 days of transactions.
The new UAE insurance regulations, effective February 15, mandate that policyholders pay insurers directly, eliminating intermediaries in the payment process.
With enhanced corporate governance measures, the Central Bank of the UAE (CBUAE) is also tightening oversight on brokerage outsourcing and data protection.
UAE’s Insurance Sector Revamped: New Payment & Claim Policies
The latest CBUAE regulations prohibit brokers from collecting general insurance premiums, ensuring that all payments go directly to insurers. This prevents delays and mismanagement, improving financial security and policyholder confidence. The structured 10-day broker commission payout also enhances stability within the brokerage sector.
A key aspect of the reform is the restriction on price-driven competition—brokers can no longer offer discounts by sacrificing commissions. Instead, they must compete based on expertise, service quality, and value. This shift elevates industry professionalism while fostering long-term business sustainability.
To enhance accountability, only licensed professionals can distribute insurance products. Brokers are also barred from financial arrangements with third parties for business referrals. Additionally, personal data must now be stored within the UAE for 10 years, ensuring stricter compliance with global best practices.
These reforms also introduce minimum capital requirements beyond bank guarantees, potentially leading to market consolidation. While this may pose financial challenges for smaller brokers, it aligns the industry with international regulatory frameworks.
The UAE’s new insurance regulations mark a shift toward greater transparency, efficiency, and security for policyholders while setting higher standards for brokers. These measures will reshape the market, emphasizing service quality over price competition.
“Transparency is the key to trust, and trust is the foundation of the financial industry.” – Christine Lagarde
