New rules issued for insurance brokers in UAE; will come into effect from February 15, 2025

According to new guidelines released by the UAE Central Bank, insurance brokers are not permitted to work in conjunction with other insurance-related professions or to collaborate with or represent other brokers. 

The law specifies that insurance businesses must pay the agreed remuneration to the broker within the period stipulated in the applicable Insurance Brokerage Agreement, which must not exceed 10 business days following receipt by the insurance companies of premium payments. If a premium is paid in installments, compensation must also be paid within the same time constraints and in installments.

HFW disclosed that the new rules would take effect on February 15, 2025. 

All insurance brokers, insurance firms, and international branches of insurance companies permitted to underwrite primary insurance and reinsurance (including Takaful), and reinsurers are considered onshore UAE-regulated businesses for these rules. 

Since they will be subject to the free zone's regulations, brokers licensed in financial free zones for reinsurance activities are excluded from these changes.

Restrictions placed on insurance brokerages and the employees that work for them include: 

- not working in any occupations connected to insurance except broking.

- Not handing over any broking activities to other brokers without the insurance company's and client's written approval, even when utilising placement brokers in different jurisdictions.

- not permitting any individual or organisation not subject to Central Bank regulation to solicit insurance policies via the employment of workers or agents of organisations that hold a licence.

- not sharing earnings with other professionals in the insurance industry.

- not giving customers any discounts from the money that insurance companies pay you.