Insurance laws United Arab Emirates
The United Arab Emirates (UAE) has a well-established and evolving insurance regulatory framework, primarily governed by Federal Decree-Law No. 48 of 2023, which regulates insurance activities across the country.
📜 Key Legislation
Federal Decree-Law No. 48 of 2023: This law, effective from November 30, 2023, repealed the previous Federal Law No. 6 of 2007. It streamlines the regulatory landscape by consolidating insurance supervision under the Central Bank of the UAE (CBUAE), following the merger with the UAE Insurance Authority. The law covers licensing, corporate governance, conduct of business, prudential requirements, and dispute resolution, with detailed provisions to be issued through subsidiary regulations
🏛️ Regulatory Authority
Central Bank of the UAE (CBUAE) As the primary regulator, the CBUAE oversees the insurance sector, ensuring compliance with the law, conducting inspections, and enforcing penalties. It also handles the transfer of insurance portfolios and the restructuring of insurers
🛡️ Consumer Protection
The UAE insurance regulations emphasize consumer protection through:
*Transparency: Insurers are required to provide clear and comprehensive information about their products, including terms, conditions, and exclusions.
*Fair Treatment: The regulations mandate that insurers treat policyholders fairly, including during claims processing and dispute resolution.
*Dispute Resolution: Policyholders have access to formal and informal avenues for resolving disputes, including engaging directly with insurers or lodging complaints with regulatory authorities.
📈 Market Landscape
*Health Insurance: Starting January 1, 2025, health insurance will be mandatory for all private sector employees and domestic workers across all UAE emirates. Employers are required to provide health insurance coverage for their registered workers upon issuance or renewal of their residency permits. The basic health insurance package is designed to be affordable, with premiums starting from AED 320 per year.
*Auto Insurance: Compulsory third-party insurance is required for all motor vehicle owners in the UAE, providing coverage for damages caused to third parties in the event of an accident.
*Capital Adequacy: Insurers must maintain specific capital levels to ensure financial stability and the ability to meet policyholder obligations. The CBUAE establishes these minimum capital thresholds, which vary depending on the nature of the insurer’s operations
🔍 Summary
The UAE's insurance regulatory framework is characterized by a commitment to transparency, consumer protection, and adaptability to technological advancements. The CBUAE plays a pivotal role in maintaining a balanced and forward-looking insurance market that aligns with both domestic needs and international standards.
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