Insurance customers in the UAE will have to make direct payments to insurers from February 15

New industry rules will take effect on February 15 and require insurance consumers in the United Arab Emirates to pay insurers directly rather than through brokers.

Brokers used to be able to collect premiums for general insurance (apart from life, marine, and health insurance) and then send them to the insurer using rules set forth by the Central Bank of the UAE (CBUAE).

Brokers are no longer allowed to give discounts by cutting their commissions, which used to level the playing field and promote price-driven competition over value-driven service, according to the new rules.

In keeping with international best practices, the CBUAE is also implementing more oversight over the outsourcing of brokerage operations, making sure that key operations continue to be managed by licensed organizations to improve accountability, data security, and service quality.