UAE: New insurance premium payment rules now in effect

Source: Middle East Insurance Review | Mar 2025

Insurance customers in the UAE must make payments directly to insurers instead of through brokers from February 2025, when new industry regulations are implemented, according to the Khaleej Times.

Under previous Central Bank of the UAE regulations, brokers were allowed to collect general insurance premiums, excluding marine, before remitting them to insurers, the article said.

The new regulations also “prohibit brokers from offering discounts by reducing their commission”, the article said. Previously, the practice “created an uneven playing field and encouraged price-driven competition over value-driven service”.

Moreover, the new regulations will prohibit brokers from entering into financial arrangements with non-insurance organisations, under which the entities are paid for referring business, the article also said.

According to the report, personal data must be kept and maintained in the UAE, with “a secure backup kept in a separate location for a minimum of ten years” under the new regulation. M

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