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  • Insurance Brokers

    • Insurance Brokers’ Regulation

      C 1/2024 Effective from 15/2/2025
      This regulation will come into force on 15 February 2025.

      The Board of Directors,

      Having perused Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organization of Financial Institutions and Activities, as amended;

      Decretal Federal Law No. (48) of 2023 Concerning the Organization of Insurance Operations;

      Decretal Federal Law No. (32) of 2021 Concerning Commercial Companies;

      Federal Law No. (8) of 2004 on the Financial Free Zones;

      Cabinet Resolution No. (23) of 2009 Concerning the Fees for Supervision, Control and Insurance Transactions;

      Cabinet Resolution No. (7) of 2019 Concerning the Administrative Fines Imposed by the Insurance Authority;

      Insurance Authority Board of Directors Resolution No. (15) of 2013 Concerning the Insurance Brokerage Regulation, as amended;

      Insurance Authority Director General Decision No. (58) of 2013 Concerning the Implementation of the Insurance Authority Board of Directors Resolution No. (15) of 2013 Concerning the Insurance Brokerage Regulation;

      Insurance Authority Board of Directors Resolution No. (3) of 2010 Instructions Concerning the Code of Conduct and Ethics to be Observed by Insurance Companies and Insurance Related Professions Operating in the UAE, as amended;

      Insurance Authority Board of Directors Resolution No. (18) of 2020 Concerning Electronic Insurance Regulations;

      Insurance Authority’s Board of Directors’ Decision No. (19) of 2020 Concerning the Guidance Manual for Insurance Companies and Related Professions to Submitting the Data, information and Supervisory Reports;

      Insurance Authority’s Work Guide of the Internal Controller at Insurance Brokerage Companies;

      Insurance Authority Board of Directors’ Decision No. (49) of 2019 Concerning Instructions for Life Insurance and Family Takaful Insurance;

      Central Bank of the UAE Notice No. CBUAE/BIS/2023/575 dated 3 February 2023 Concerning Clarifications re ESCROW Account Requirements;

      Central Bank Notices No. CBUAE/BSD/N/2022/4775, CBUAE/BSD/2022/4708 and CBUAE/BSD/N/1661 dated 28 November 2022, 22 November 2022 and 18 April 2022 respectively; and 

      Based on the recommendation of the Governor and the approval of the Board of Directors;

      Has resolved as follows:

      • Introduction

        This Regulation lays down the rules and conditions established by the Central Bank for licensing, regulating and supervising the operations of Insurance Brokers.

        The Central Bank aims at ensuring that Insurance Brokers are properly Licensed and supervised, depending on the nature, scale and complexity of their business operations. By introducing this Regulation, the Central Bank requires Insurance Brokers to maintain financial soundness requirements; sound governance practices; the ability to manage risk prudently and actively engage in communication with the Central Bank.

        This Regulation is issued pursuant to the powers vested in the Central Bank under Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organization of Financial Institutions and Activities, as amended, and Decretal Federal Law No. (48) of 2023 Concerning the Organization of Insurance Operations.

      • Objectives

        This Regulation sets out the requirements concerning:

        1. conditions for licensing Insurance Brokers;
        2. rights and obligations of Insurance Brokers towards Companies and Clients;
        3. prudential requirements addressing financial soundness, risk management, Internal Controls, reporting and disclosure;
        4. powers of the Central Bank with regard to the supervision of Insurance Brokers.

        In exercising its powers and functions under this Regulation, the Central Bank has regard to the following objectives:

        1. fair treatment of Clients;
        2. ensuring the safety, soundness and efficiency of insurance industry;
        3. promoting the reliability and efficiency of Insurance Brokerage operations, as well as public confidence in the insurance industry;
      • Scope of Application

        1. all Insurance Brokers operating in the State;
        2. all Companies operating in the State;
        3. all primary insurance operations; in this context primary insurance operations refers all insurance operations excluding reinsurance; and
        4. all reinsurance operations to the extent commensurate with their nature, as determined by the Central Bank.

        The Central Bank will apply the principle of proportionality in the application of the Regulation, whereby Insurance Brokers may demonstrate to the Central Bank that, based on the nature, scale and complexity of their business, the objectives are met without necessarily addressing all of the specifics cited therein. The Central Bank will decide on the extent to which an Insurance Broker is expected to meet the requirements.

      • Article (1) Definitions

        The following terms shall have the meaning assigned to them below for the purposes of this Regulation:

        1-1

        Applicant: A juridical Person, which files an application with the Central Bank for the granting of a License for the provision of Insurance Brokerage services.

        1-2

        Beneficiary: A Person who initially acquired the Insurance Policy rights, or to whom such rights have been legally transferred.

        1-3

        Central Bank: The Central Bank of the United Arab Emirates.

        1-4

        Central Bank Laws: Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organization of Financial Institutions and Activities, as amended and Decretal Federal Law No. (48) of 2023 Concerning the Organization of Insurance Operations.

        1-5

        Cession: Ceding the liability arising from the Insurance Policy as a whole or in part by the Company or the Reinsurer to another Reinsurer pursuant to a reinsurance contract or Retrocession contract.

        1-6

        Claim Settlement: The process by which a Company pays money to a Client as compensation, which originates from an insurance/reinsurance contract.

        1-7

        Client: A Person for whom the Insurance Broker practices the Insurance Brokerage business in accordance with the provisions of this Regulation.

        1-8

        Company:

          

        a. 

        The insurance company incorporated in the State, and the foreign branch of an insurance company, that is licensed to underwrite primary insurance and reinsurance, including Takaful insurance companies, or

          

        b. 

        A reinsurer.

        1-9

        Conflict of Interest: A situation of actual or perceived conflict between the duty and private interests of a Person, which could improperly influence the performance of his/her duties and responsibilities.

        1-10

        Control Function: Function (whether in the form of a natural Person, unit or department) that has a responsibility in an Insurance Broker to provide objective assessment, reporting and/or assurance; this includes risk management, compliance, and internal audit.

        1-11

        Corporate Governance: A set of relationships between an Insurance Broker’s Representatives, Senior Management, Clients and other stakeholders; and a structure through which the objectives of the Insurance Broker are set, and the means of attaining those objectives and monitoring performance are determined.

        1-12

        Financial Free Zones: Financial free zones subject to the provisions of Federal Law No (8) of 2004, Regarding Financial Free Zones.

        1-13

        Fit and Proper Process: The evaluation of the proposed natural Persons to become the Insurance Broker’s Representatives, Senior Management, Specialised Employees and other natural Persons as determined by the Central Bank from time to time, in terms of integrity, competence and financial soundness. The specific fit and proper criteria are listed in Article (5) of this Regulation.

        1-14

        Governor: The Governor of the Central Bank.

        1-15

        Insurance-Related Professions: Any Person licensed by the Central Bank to practice any of the activities of insurance agent, Insurance Broker, surveyor and loss adjuster, insurance consultant, actuary or health insurance third party administrator or any other Insurance-Related Profession that the Central Bank decides to regulate.

        1-16

        Insurance Certificate: A temporary documentary proof of insurance coverage containing a summary of the terms, conditions and coverage.

        1-17

        Insurance Policy: The insurance/ reinsurance document concluded by the Company and Client, containing the terms and conditions of the contract between the parties, their obligations, and rights or the rights of Beneficiary of the insurance/reinsurance and any endorsements therein.

        1-18

        Insurance Broker: The juridical Person Licensed by the Central Bank which independently intermediates in insurance and reinsurance operations between the insurance or re-insurance Client on one side and any other Company from the other side, and receives for its efforts Remuneration from the Company with which the insurance or re-insurance has been concluded.

        1-19

        Insurance Broker’s Representatives: The partners or board of directors of the Insurance Broker, or their equivalent.

        1-20

        Insurance Brokerage: The activity of soliciting, negotiating or selling insurance/reinsurance contracts through any medium, where:

          

        a. 

        "Solicit" means attempting to sell insurance/reinsurance or asking a Person to apply for a particular kind of insurance/reinsurance from a particular Company for Remuneration by the Company exclusively;

          

        b. 

        "Negotiate" means the act of conferring directly with, or offering advice directly to, a Client or prospective Client of a particular contract of insurance/reinsurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the Person engaged in that act either sells insurance/reinsurance or obtains insurance/reinsurance from Companies for Clients; and

          

        c. 

        "Sell" means to exchange a contract of insurance/reinsurance by any means, for remuneration on behalf of a Company

        1-21

        Internal Controls: A set of processes, polices and activities governing an Insurance Broker’s organizational and operational structure, including reporting and Control Functions.

        1-22

        License: A License issued by the Central Bank to an Applicant to provide Insurance Brokerage services and to register it in the Register.

        1-23

        Matter of Significance: A matter, or group of matters, that would have a significant impact on the activities or financial position of the Insurance Broker. Examples include failure of preserving the assets of the Insurance Broker, failure to comply with Central Bank Laws and Regulations, and other matters that are likely to be of significance to the function of the Central Bank as regulator.

        1-24

        Outsourcing: An arrangement between an Insurance Broker and a service provider within the State, for the latter to perform a process, service or activity which would otherwise be performed by the Insurance Broker itself.

        1-25

        Person: Any natural or juridical person.

        1-26

        Personal Data: Any information which are related to an identified or identifiable natural Person, pursuant to Central Bank Notice CBUAE/BSD/N/1661 dated 18 April 2022 Guidance on the Personal Data that Can be Collected for Insurance Policies.

        1-27

        Premium: An amount of money that the Client approved to pay in return of providing him/her/them with the insurance/reinsurance coverage.

        1-28

        Reinsurer: A Company or a reinsurance company or an insurance pool or reinsurance pool, or syndicates of underwriting insurance groups that accept cessions.

        1-29

        Remuneration: Any commission, fee, charge or other payment, including an economic benefit of any kind or any other financial or non-financial advantage or incentive offered or given in respect of Insurance Brokerage activities.

        1-30

        Retrocession: The Reinsurer ceding to another Reinsurer the liability of the risk it has accepted pursuant to the reinsurance contract.

        1-31

        Regulations: Any resolution, regulation, circular, rule, standard or notice issued by the Central Bank or by the competent authority in the State.

        1-32

        Register: The register of Insurance Brokers at the Central Bank.

        1-33

        Risk Governance Framework: As part of the overall approach to Corporate Governance, the framework through which the Insurance Broker’s Representatives and Senior Management establish and make decisions about the Insurance Broker’s strategy and risk approach, and identify, measure, manage and control risks.

        1-34

        Senior Management: The individuals or body responsible for managing the Insurance Broker on a day-to-day basis in accordance with strategies, policies and procedures set out by the Insurance Broker’s Representatives, generally including, but not limited to, the chief executive officer, chief financial officer, heads of Control Functions and branch managers.

        1-35

        Specialised Employee: The employee appointed by the Insurance Broker and approved by the Central Bank to conduct core Insurance Brokerage activities in specific types/lines of business, based on their qualifications and experience.

        1-36

        Staff: All the Persons working for an Insurance Broker including the members of Senior Management, except for the Insurance Broker’s Representatives, or their equivalent.

        1-37

        State: The United Arab Emirates.

        1-38

        Takaful Insurance: A collective contractual arrangement aiming at achieving cooperation among a group of participants against certain risks whereby each participant pays certain contribution to form an account called the participants' account through which entitled compensations are paid to the member in respect of whom the risk has realized. The Takaful Insurance Company shall manage this account and invest the funds collected therein against certain compensation.

         
      • Article (2) Licensing

        2-1

        No Person shall provide or engage in Insurance Brokerage within the State without being Licensed by the Central Bank.

        2-2

        No Company shall engage with any Person to obtain Insurance Brokerage services, unless such a Person is Licensed by the Central Bank.

        2-3

        Applicants must apply for one of the following categories of licensing:

          

        a. 

        category I licensing: 

        (Primary insurance operations);

          

        b.

        category II licensing: 

        (Reinsurance operations); or

          

        c.

        category III licensing: 

        (Primary insurance operations and reinsurance operations).

        2-4

        Applicants must be:

          

        a. 

        incorporated in the State in accordance with the Decretal Federal Law No. (32) of 2021 on Commercial Companies, having the objective of practicing the Insurance Brokerage activity; or

          

        b. 

        a branch of a company incorporated in a Financial Free Zone with presence in the State; or

          

        c. 

        a branch of a foreign company with presence in the State.

        2-5

        Applicants applying under paragraphs (b) and (c) of Article (2.4) must be:

          

        a. 

        licensed to practice Insurance Brokerage in a Financial Free Zone in the State or in the country of origin, in the same type of insurance;

          

        b. 

        subject to the control of a supervisory authority, with a minimum five (5) years of practice in Insurance Brokerage;

          

        c.

        have presence in the State;

          

        d.

        subject to any controls or conditions set by the Central Bank; and

          

        e.

        Insurance Brokerage operations by Financial Free Zones licensed brokers for re-insurance business carried out in the Financial Free Zones are not required to be licensed by the Central Bank.

        2-6

        To be Licensed by the Central Bank an Applicant must submit the documents listed hereinafter:

          

        a.

        a completed application form;

          

        b.

        strategy overview;

          

        c. 

        a statement describing the added value that the Applicant will bring to the UAE insurance market;

          

        d. 

        business plan, including:

            

        I.

        Conflict of Interest policy;

            

        II.

        reporting lines; and 

            

        III.

        technology infrastructure, Outsourcing arrangements, data warehousing arrangements and webhosting;

          

        e.

        information and cyber security arrangements;

          

        f.

        training and Emiratization plan for UAE nationals;

          

        g. 

        ownership details including the following:

            

        I.

        details of the proposed natural Persons to fill the positions of the Insurance Broker’s Representatives;

            

        II.

        proof of identity for partners (a minimum of two (2) separate documents); and

            

        III.

        details and proof of identity (as above) for the ultimate beneficial owner.

          

        h. 

        the background and experience of Senior Management, including CVs of Senior Management and Specialized Employees;

          

        i. 

        proof of satisfying the Fit and Proper Process requirements by natural Persons proposed for the Insurance Broker’s Representatives, Senior Management, Specialized Employees and other natural Persons as determined by the Central Bank from time to time;

          

        j. 

        audited financial statements (for the past three (3) years, if available);

          

        k. 

        proof of ownership or the authenticated lease of the property that the Insurance Broker’s intends to use as headquarters in the State, along with a description of the proposed software and technical systems;

          

        l.

        exit strategy and plan;

          

        m.

        measures that the Insurance Broker has in place to ensure the complete compliance with anti-money laundering and combating the financing of terrorisim and financing of illegal organisations laws and regulations or laws related to other unlawful activities; including but not limited to:

            

        I.

        comprehensive and effective policies, procedures and controls are in place to address money laundering and terrorist financing risks;

            

        II.

        ability to identify, assess, understand and mitigate money laundering and terrorist financing risks to which they are exposed;

            

        III.

        sufficient know your customer (KYC), customer due diligence (CDD) and enhanced due diligence (EDD) are in place;

            

        VI.

        to be guided by the Financial Action Task Force (FATF) Standards on anti-money laundering and countering the financing of terrorism and proliferation.

          

        n.

        proof of payment of application fee; and

          

        o.

        a declaration that the Insurance Broker’s Representatives or equivalent, satisfy the requirements of Article (15) of Decretal Federal Law No. (48) of 2023 Concerning the Organization of Insurance Operations.

        2-7

        In addition to the requirements stipulated in Article (2.5) branches of foreign Insurance Brokers and Insurance Brokers established in Financial Free Zones must submit the following:

          

        a. 

        the certificate of incorporation issued by the competent authority showing the Insurance Broker’s incorporation and licensing to practice Insurance Brokerage in the types and lines of business applied for;

          

        b. 

        a copy of the audited financial statements for the last two (2) years, prepared and audited in the UAE; and

          

        c. 

        a certified copy of the Insurance Broker’s Representatives decision approving the establishment of a branch in the UAE mainland.

        2-8

        The Central Bank may request the Applicant to provide further information as part of the process.

        2-9

        An Applicant must meet the minimum capital requirements per licensing category, as follows:

          

        a. 

        three million (3,000,000) AED for the Insurance Broker established in the State. The share of UAE nationals in the capital must not be less than fifty one percent (51%) of the total paid up capital.

          

        b. 

        ten million (10,000,000) AED for the branch of an Insurance Broker established in a Financial Free Zone in the State or a foreign branch; and

          

        c. 

        The Central Bank may require that certain Insurance Brokers must meet higher capital and national shareholding requirements, based on their size, complexity and nature of their operations.

        2-10

        An Applicant must provide a bank guarantee favouring the Central Bank from a bank licensed in the State, provided that the value of the bank guarantee at any point in time shall not be less than the following:

          

        a. 

        three million (3,000,000) AED for the Insurance Broker established in the State, and one million (1,000,000) AED for each additional branch;

          

        b. 

        five million (5,000,000) AED for the Insurance Broker established in a Financial Free Zone in the State or a foreign branch, and three million (3,000,000) AED for each branch of the Insurance Broker; and

          

        c. 

        an Applicant/ Insurance Broker must increase the value of the bank guarantee favouring the Central Bank as required under Articles (2.10.a) or (2.10.b) of this Regulation upon receiving a letter from the Central Bank demanding an additional bank guarantee. The additional bank guarantee must be submitted to the Central Bank within the deadline stipulated in the letter.

          

        d. 

        The bank guarantee stated in this Article is in addition to the minimum capital requirements.

        2-11

        An Applicant/Insurance Broker must obtain a professional indemnity insurance policy, according to the following conditions:

          

        a. 

        issued by a Company licensed by the Central Bank, after the Central Bank's approval on the terms and conditions of such policy;

          

        b. 

        the insured must be the Insurance Broker and the Beneficiary must be the Central Bank;

          

        c. 

        issued for the purpose of guaranteeing any liability arising from damages resulting from practicing Insurance Brokerage operations, in case of unintentional acts or omissions and negligence;

          

        d. 

        valid throughout the License term and applicable to the annual renewal of the licensing; and

          

        e. 

        the insured sum under the policy must not be less than two million (2,000,000) AED for Insurance Brokers incorporated in the State, provided that the deductible amount does not exceed thirty thousand (30,000) AED for each incident. As for the branch of a foreign Insurance Broker or Insurance Broker incorporated in any Financial Free Zone, the insured sum under the policy must not be less than three million (3,000,000) AED, provided that the deductible amount must not exceed fifty thousand (50,000) AED for each incident.

        2-12

        Amending the terms and conditions of the professional indemnity insurance policy stipulated in Article (2.11) is subject to the Central Bank’s written approval.

        2-13

        An Applicant must pay the prescribed fees pursuant to Cabinet Resolution No. (23) of 2009 Concerning Fees for Supervision, Control and Insurance Transactions.

        2-14

         

        a. 

        The Central Bank shall communicate its decision within (20) business days considering the merits of the application and approve it with or without conditions and limitations or reject the application stating the reasons for the rejection.

          

        b. 

        The Central Bank may reject the application if it concluded that there is no added value to the UAE insurance market as it deems appropriate for the need of the national economy, if a License was granted to the Applicant.

        2-15

        Once an Applicant satisfies all the requirements, it shall be granted a License.

        2-16

         

        a. 

        The term of a License shall be one (1) year and must be renewed annually at least one (1) month prior to the expiration date based on the submission of a renewal application and paying the prescribed fees.

          

        b. 

        The Central Bank may revoke the License if the Insurance Broker failed to comply with Paragraph (a) of this Article.

        2-17

        Branches of the Insurance Broker must not be established without the prior written consent of the Central Bank. No permission for a new branch is granted by the Central Bank unless the financial conditions of the Insurance Broker are sound and the Insurance Broker has not committed any violations. . The current regulation concerning the elapse of the impact of disciplinary sanctions shall be taken into consideration in this regard. Licensing requirements for branches of Insurance Brokers, are as follows:

          

        a.

        an undertaking to provide the title deed of the premises of the branch or its lease contract approved by the concerned authorities;

          

        b. 

        approval of the competent authority in the relevant Emirate;

          

        c. 

        a declaration from the branch manager that he/she is fully responsible for the actual management of the branch;

          

        d. 

        a statement showing the technical equipment in the branch, as well as a list of the names and job titles of Staff;

          

        e.

        a statement showing the premium volume achieved in the fiscal year preceding the submission of the application, provided that the volume of premiums in the previous fiscal year is not less than three million (3,000,000) AED;

          

        f.

        a period of no less than two (2) years has elapsed since the Insurance Broker was Licensed, during which it actually practiced Insurance Brokerage, and no penalties or administrative violations were imposed on it;

          

        g.

        a declaration that the new branch will operate under the direct supervision of the chief executive officer; and

          

        h.

        a letter of bank guarantee according to Article (2.10.a) of this Regulation.

        2-18

        The Insurance Broker must obtain the necessary local licenses and commence its activities within six (6) months of the date of licensing by the Central Bank under this Regulation. The Central Bank must be provided with a copy of the licenses issued by local authorities as soon as they are obtained.

      • Article (3) Revocation, Suspension, Restriction and Variation of License

        3-1

         

        The Central Bank may at any time revoke, suspend, restrict or vary the License if any of the following circumstances materializes:

          

        a.

        the Insurance Broker does not comply with any condition of the licensing conditions;

          

        b.

        the Central Bank has been provided with false, misleading or inaccurate information by or on behalf of the Insurance Broker or any of the Insurance Broker’s Representatives;

          

        c.

        the interests of Clients or potential Clients of the Insurance Broker are in any way threatened, whether by manner in which the Insurance Broker is conducting its business or for any other reason;

          

        d.

        an order for the liquidation of the business of the Insurance Broker or any of the Insurance Broker’s Representatives has been made by a competent judicial/supervisory authority or the voluntary liquidation of the Insurasnce Broker;

          

        e.

        a receiver or manager or any similar officer of the Insurance Broker has been appointed by a judicial authority;

          

        f.

        a bankruptcy order or judgment has been made in respect of the Licensed Insurance Broker;

          

        g.

        the Insurance Broker suspends its activities for a period of six (6) consecutive months;

          

        h.

        the Insurance Broker, in the opinion of the Central Bank, is unable to pay its debts as they fall due or the value of its assets is, in the opinion of the Central Bank, is less than the amount of its liabilities, taking into account its contingent and prospective liabilities;

          

        i.

        execution or other process is issued on a judgment decree or order to sell its assets or part thereof by any court and is returned unsatisfied in whole or in part;

          

        j.

        the Insurance Broker does not start activities within six (6) months from licensing; or

          

        k.

        the Insurance Broker provided false or misleading information or concealed or failed to disclose material facts in the application.

        3-2

        Upon the lapse of three (3) months from the date of revocation, and after satisfying all the Insurance Broker’s liabilities, the letter of guarantee and the professional indemnity policy shall be terminated, upon the issuance of a decision in that regard by the Central Bank.

      • Article (4) On-Going Requirements

        4-1

        An Insurance Broker must not combine its role in such a capacity on the one hand and the role of any other Insurance-Related Professions on the other hand.

        4-2

        An Insurance Broker must not be partner or agent of any other Insurance Broker.

        4-3

        An Insurance Broker must notify the Central Bank of the appointment of any Specialised Employees, and of any modification or alteration that may arise regarding their transfer or termination, stating the reasons thereof. An Insurance Broker must also notify the Central Bank once any of the Specialised Employees become vacant and an alternative must be appointed until such vacant post is permanently filled within a maximum period of thirty (30) days from the date of vacancy.

        4-4 

        An Insurance Broker must have:

          

        a.

        adequate Staff who possess the requisite qualifications, competencies and skills to individually and collectively provide the range of services in all lines of business in which the Insurance Broker is Licensed to operate; and

          

        b.

        at least one Specialized Employee for each Licensed insurance type/line of business at all times.

        4-5

        An Insurance Broker must fully comply with the following obligations on an ongoing basis:

          

        a.

        the Insurance Broker’s legal status, its ownership and capital or its premises must not be altered without the prior written approval of the Central Bank;

          

        b.

        dealings between the Insurance Broker and its Clients must be supported by official documents for all Insurance Brokerage operations;

          

        c.

        the Insurance Broker must not encumber any of its assets without the prior written approval of the Central Bank;

          

        d.

        any of the Insurance Broker’s Representatives must not withdraw any amount from the Insurance Broker in excess of his/her share of the annual net profit; to this end current accounts connected to Insurance Brokers for withdrawal/ cash injection purposes are prohibited;

          

        e.

        the Insurance Broker’s Representatives, or Senior Management or any of their equivalents must not borrow from the Insurance Broker or lend to any Person any of the Insurance Broker’s funds; and

          

        f.

        the Insurance Broker must provide, upon the Central Bank’s request, all data, information, documents or statistics, at any time and for any specified period. Such information must be identical to the records of the Insurance Broker and must be treated as confidential information by the Insurance Broker.

          

        g.

        the Insurance Broker must have the necessary policies and procedures that ensure updating the unsernames and passwords for the users that are authorized to access the electronic platforms supplied by the Companies to sell insurance policies, and to cancel them for the Staff that were terminated.

      • Article (5) Fit and Propper Process

        5-1

        Fit and Proper Process criteria include the following:

          

        a.

        satisfying the requirements of Article No. (15) of Decretal Federal Law No. (48) of 2023 Concerning the Organisation of Insurance Operations;

          

        b.

        meeting the necessary qualifications, knowledge and experience requirements;

          

        c.

        having a record of integrity, competence and financial soundness;

          

        d.

        having sufficient time to fully discharge their responsibilities;

          

        e.

        not having any Conflict of Interest; and

          

        e.

        passing the assessment determined by the Central Bank for this purpose.

        5-2

        Demonstration of integrity, competence and financial soundness, which includes the following:

          

        a.

        satisfying the requirements of Article (15) of Decretal Federal Law No. (48) of 2023 Concerning the Organization of Insurance Operations;

          

        b.

        being of good conduct and behavior, and never having been sentenced to a freedom restricting punishment for a moral turpitude crime without being rehabilitated; and

          

        c.

        not having stopped the payment of commercial debts even if not associated with bankruptcy declaration, or not having been judged bankrupt without being rehabilitated.

        5-3

        Senior Management must have the following qualifications and experience, as a minimum:

          

        a.

        For the chief executive officer or equivalent:

            

        I.

        hold a bachelor’s degree or equivalent, or the (ACII) designation from the Chartered Insurance Institute of London, or an advanced diploma accredited by a similar professional institute;

            

        II.

        have successfully completed three (3) training courses in insurance or Insurance Brokerage; and

            

        III.

        have a minimum practical experience of ten (10) years in insurance/Insurance Brokerage activities, and no less than five (5) years if he/she holds a higher academic qualification. The experience requirement for a UAE national shall be a minimum of five (5) years and two (2) if he/she holds a higher academic qualification.

          

        b.

        For Control Functions:

            

        I.

        hold a bachelor’s degree or equivalent, or an accredited professional financial certificate approved by the Central Bank; and

            

        II.

        have practical experience in risk management, internal or external audit, and has previously taken part in the audit of Companies or Insurance Brokers for no less than three (3) years, or two (2) years if he/she holds a higher educational qualification or if he/she is a UAE national.

          

        c.

        For Senior Management that does not fall under the above-mentioned items (a) and (b) including but not limited to operations manager, and branch manager:

            

        I.

        hold a bachelor’s degree or equivalent; and

            

        II.

        have a minimum practical experience of six (6) years in insurance/Insurance Brokerage, and no less than three (3) years if he/she holds a higher academic qualification. The experience requirement for a UAE national shall be a minimum of two (2) years, and one (1) year if he/she holds a higher academic qualification.

        5-4

        A Specialised Employee must have the following qualifications and experience, as a minimum:

          

        a.

        hold a bachelor’s degree or equivalent;

          

        b.

        have a minimum practical experience of five (5) years in the field of the Licensed type or class of insurance/Insurance Brokerage. The experience requirement for a UAE national shall be a minimum of three (3) years in the said fields.

        5-5 

        Academic degrees must be accredited as equivalents by the competent authority in the State.

        5-6

        An Insurance Broker must submit an annual report along with the application to renew the License pursuant to Article (2.16) of this Regulation that contains proof of completion of fifteen (15) hours of continuing professional development for the Insurance Broker’s Representatives, Senior Management and Specialised Employees. In this context, continuing professional development includes attending insurance/ Insurance Brokerage related conferences, training programs and workshops.

        5-7

        The Insurance Broker’s Representatives, Senior Management, Specialised Employees and Staff meet the Fit and Proper Process’ requirements on an on-going basis.

        5-8

        On a cas-by-case basis, the Central Bank shall have the right to exempt nominees to fill any of the positions stated in this Article from any conditions, upon the sole discretion of the Central Bank.

      • Article (6) Insurance Brokerage Agreements

        6-1 

        Insurance Brokers must enter into and maintain valid Insurance Brokerage agreements with at least two (2) Companies. Such agreements must be fair, disclose all material contractual rights and obligations for parties involved and signed by the authorised Persons of both parties.

        6-2

        The Insurance Brokerage agreements must address the following matters, as a minimum:

          

        a.

        duration, the reasons for termination and the methods for termination;

          

        b.

        types and lines of business;

          

        c.

        geographical area; and

          

        d.

        the type of remuneration, the methods of its calculation and due dates of its payment.

        6-3

        The Insurance Brokerage agreement must not include any of the following terms:

          

        a.

        terms that make the Insurance Broker responsible for any Premiums unpaid by the Clients. Any agreements/ arrangements (written or otherwise) that are entered into outside the scope of the Insurance Brokerage agreements that contain such terms, will subject the Insurance Broker and the Company to disciplinary action by the Central Bank;

          

        b.

        authorization to the Insurance Broker to issue insurance policies or endorsements thereto, or to amend policies or endorsements except for the issuance of motor Insurance Certificates if both parties choose to do so; and

          

        c.

        terms that prevent the Insurance Broker from practicing its activity with any other Company.

        6-4

        Premium collections from the insured Persons remain the responsibility of the Company at all times.

        6-5

        The Central Bank may require amending certain terms and conditions of the Insurance Brokerage agreements, on a case-by-case basis, as it deems appropriate for safeguarding public interest.

      • Article (7) Premiums, Claim Settlements, Refunds and Remuneration

        7-1

        Premiums generated from all types/lines of primary insurance business must be paid directly by Clients to Companies. Insurance Brokers must instruct Clients to this effect in writing prior to inception, and retain records to show the Clients’ acknowledgment to this condition. Insurance Brokers are prohibited from collecting Premiums under any circumstances.

        7-2

        Premiums generated from reinsurance operations are subject to the reinsurance brokerage agreement concluded between the Reinsurer and the Insurance Broker.

        7-3

        Claim Settlements and Premium refunds resulting from all types of primary insurance business must be paid directly by Companies to Clients. Insurance Brokers are prohibited from collecting Claim Settlements or Premium refunds.

        7-4

        Claim Settlements and Premium refunds resulting from all types of reinsurance business are subject to the reinsurance brokerage agreement concluded between the Reinsurer and the Insurance Broker.

        7-5

        Insurance Companies and Insurance Brokers must establish and maintain all the necessary electronic means to facilitate the application of this Article.

        7-6

         

        a. 

        When the Insurance Broker conducts Insurance Brokerage undertakings that lead to the conclusion of an Insurance Policy with a certain Client, then the Insurance Broker becomes entitled to receive Remuneration from the Company upon inception and renewal of the Insurance Policy, as long as the Insurance Brokerage agreement is valid.

          

        b.

         

        I. 

        Companies are prohibited from communicating directly or indirectly with the Clients of the Insurance Broker, whether during inception or at renewals for the purpose of depriving it from its Remuneration.

            

        II.

        Notwithstanding what it stated in the former sub-Article (I) of this Article, Companies may communicate with Clients of Insurance Brokers if Clients owe due and unpaid premiums or instalments thereof to the Company.

        7-7 

         

        a. 

        A Company must pay the due Remuneration to the Insurance Broker within the time specified in the Insurance Brokerage agreement, which in all cases must not exceed ten (10) business days from the date of receipt of such payment(s) of premium(s) by the Company.

          

        b.

        If the premium was to be paid through instalments, then the Company must pay the Insurance Broker its share of each instalment within the time specified in the Insurance Brokerage agreement, which in all cases must not exceed ten (10) business days from the date of receipt of such instalment.

          

        c.

        Notwithstanding what is stipulated in paragraph (b) of this Article, Insurance Authority Board of Directors’ Decision No. (49) of 2019 Concerning Instructions for Life Insurance and Family Takaful Insurance applies to life insurance and family Takaful Insurance policies.

      • Article (8) Financial Soundness

        8-1

        Excluding the first year of licensing, the net equity of an Insurance Broker must not be less than hundred percent (100%) of the paid capital, at all times.

        8-2

        If the net equity falls below hundred percent (100%) of the paid capital, the Insurance Broker must notify the Central Bank immediately and submit a plan to the Central Bank to re-establish the required level of the net equity within fifteen (15) days from breaching the aforementioned threshold.

        8-3

        The Central Bank may take the measures it deems necessary towards the Insurance Broker in the event of net equity falls below hundred percent (100%). The Insurance Broker’s Representatives must inform the general assembly or its equivilant to either increase the capital to re-establish the required level of the net equity within the time specified by the Central Bank, or to liquidate the establishment.

        8-4

        An Insurance Broker must not undertake new Insurance Brokerage activities until it reestablished the required level of the net equity. The Insurance Broker must honor its existing commitments towards Clients and Companies at all times during the period of re-establishment of the required level of the net equity.

        8-5

        Dividends to the Insurance Broker’s Representatives or any form of profits repatriation to the head office of the Insurance Broker is subject to the Central Bank’s prior written approval, upon ensuring that the Insurance Broker has fulfilled the financial soundness requirements. the Insurance Brtoker’s Representatives may only receive dividends or withdraw any amounts of money or any of the corporation’s assets, surplus/profit, provided that the net equity amounts more than hundred percent (100%) of the paid capital.

        8-6

        Liquid assets must not be less than hundred percent (100%) of current liabilities.

        8-7

        Cash must not be less than twenty five percent (25%) of net liabilities.

        8-8 

        The bank guarantee stated in Article (2.10) and/or the amount of money reserved in return of granting the bank guarantee does not form part of the assets that can be used to satisfy the requirements of Artilces (8.6) and (8.7).

        8-9

        If the requirements provided for in Articles (8.6) and (8.7) are not met, the Insurance Broker must submit a plan to the Central Bank to rectify its position within fifteen (15) days of notifying it of such non-compliance. The plan must include the measures to be taken and the time required. The Central Bank may accept or reject the plan, or require additional measures to be taken.

        8-10

        If the Insurance Broker does not execute the plan referred to in Article (8.9) within the specified timeframe, the Central Bank shall take the necessary measures towards the Insurance Broker, as it may deem fit.

        8-11

        In case there is a surplus of the paid capital to the minimum capital requirement, the capital may not be reduced without the Central Bank’s approval, based on the level of financial soundness of the Insurance Broker.

        8-12

        Title/ownership of all assets of the Insurance Broker must be vested exclusively in the Insurance Broker.

      • Article (9) Corporate Governance

        9-1

        An Insurance Broker must have in place effective, robust and well-documented Corporate Governance arrangements, including a clear organizational structure with well-defined, transparent and consistent lines of responsibility.

        9-2

        The Corporate Governance arrangements referred to in Article (9.1) must be comprehensive and proportionate to the nature, scale and complexity of the operations of the Insurance Broker, and must contain, at a minimum:

          

        a.

        an organization chart showing each division, department or unit, indicating the name of each responsible individual accompanied by a description of the respective function and responsibilities;

          

        b.

        controls on Conflicts of Interest;

          

        c.

        controls on integrity and transparency of the Insurance Broker’s operations;

          

        d.

        controls to ensure compliance with Central Bank Laws and Regulations;

          

        e.

        methods for maintaining confidentiality of information;

          

        f.

        procedures for regular monitoring and auditing of all Corporate Governance arrangements;

          

        g.

        a professional code of conduct for the Insurance Broker’s Representatives and Staff, to ensure their compliance with Central Bank Laws and Regulations; and

          

        h.

        a whistleblowing policy mechanism to ensure protection of Staff who raise concerns from detrimental treatment or reprisals.

        9-3

        An Insurance Broker’s organisational structure must incorporate a “three lines of defence” approach comprising of:

          

        a.

        the business lines;

          

        b.

        the risk and compliance functions; and

          

        c.

        independent internal audit function.

      • Article (10) Risk Governance Framework and Internal Controls

        10-1

        An Insurance Broker must have in place an appropriate Risk Governance Framework that includes policies, processes, procedures, systems and controls to identify, measure, evaluate, monitor, report and control or mitigate material sources of risk on a timely basis.

        10-2

        The Risk Governance Framework must address, amongst other key risks, the following areas:

          

        a.

        operational risk;

          

        b.

        conduct risk;

          

        c.

        insurance fraud;

          

        d.

        cybercrime and attacks; and

          

        e.

        money laundering and terrorist financing.

        10-3

        An Insurance Broker’s definition and assessment of material risks must take into account nature, scale and complexity of its operations.

        10-4

        An Insurance Broker must have in place mitigating action plans for key material risks and monitor them on an ongoing basis.

        10-5

        The Insurance Broker’s Representatives are ultimately accountable for the Risk Governance Framework.

        10-6

        An Insurance Broker’ Risk Governance Framework must be:

          

        a.

        kept up-to-date;

          

        b.

        reviewed annually; and

          

        c.

        proportionate to the nature, scale and complexity of their operations.

        10-7

        An Insurance Broker must have an Internal Controls system that ensures effective operations, adequate control of risks, prudent conduct of business, reliability of financial and non-financial information reported and compliance with Central Bank Laws and Regulations.

        10-8

         

        a.

        An Insurance Broker must have effective Control Functions with the necessary independence, authority and resources covering risk management, compliance and internal audit. The effectiveness of the Control Functions must be assessed periodically by the Insurance Broker’s Representatives.

          

        b.

        Control Functions must have an appropriate level of authority. The head of the Control Function must not participate in operational business responsibilities, such as underwriting, sales or accounting.

          

        c.

        Control Functions must avoid Conflicts of Interest. Where any conflicts remain and cannot be resolved by Senior Management, they must be brought to the attention of the Insurance Broker’s Representatives for resolution.

        10-9

        The existence of Control Functions does not relieve the Insurance Broker’s Representatives of their responsibilities.

        10-10

        The head of each Control Function must have access to the Insurance Broker’s Representatives and must submit periodic reports on the matters determined by them.

        10-11

        Heads of Control Functions must submit annual reports to the Central Bank, as follows:

          

        a.

        risk management function:

            

        I.

        assessment of risk positions, exposures and the steps being taken to manage them;

            

        II.

        risk management issues resulting from strategic affairs of the Insurance Broker such as corporate strategy, mergers and major projects; and

            

        III.

        assessment of risk events and the identification of appropriate remedial actions and the assessment of results after implementation.

          

        b.

        compliance function:

            

        I.

        assessment of the key compliance risks the Insurance Broker faces and the steps being taken to address them;

            

        II.

        assessment of how the various parts of the Insurance Broker such as divisions, major business units are performing against compliance standards and goals;

            

        III.

        any compliance issues involving management or Persons in positions of major responsibility within the Insurance Broker, and the status of any associated investigations or other actions being taken.

          

        c.

        Internal audit function:

            

        I.

        assessment of all material areas of risk, including, but not limited to, concentration of risk, operational risk, risk-mitigation techniques and conduct of business;

            

        II.

        ensuring that controls are in place to preserve the assets of the Insurance Broker, preventing fraud and assessing the effectiveness of the controls in place in this regard; and

            

        III.

        assessing the reliability and efficiency of the accounting, financial, risk and compliance reporting information and the effectiveness of the controls in place.

        12-10 

        The heads of risk management, compliance, and internal audit must promptly report to the Central Bank any violations of the Central Bank Laws and Regulations, and any Matters of Significance. Heads of risk management, compliance and internal audit making such reports in good faith shall not be considered to have breached any of their obligations.

        13-10 

        The Insurance Broker must not dismiss the head of Control Functions without first obtaining the non-objection of the Central Bank.

        14-10 

        Insurance Brokers must promptly notify the Central Bank in case of resignation of their heads of risk management, compliance or internal audit and the reasons thereto.

        15-10 

        Outsourced activities must remain fully in scope of the Insurance Broker’s Control Functions’ responsibilities.

        16-10 

        Excluding Control Functions, an Insurance Broker may combine positions at the Insurance Broker, subject to the Central Bank’s approval. The Central Bank shall approve the combination of positions on a case-by-case basis, with due consideration of the size, complexity, volume and lines of business of the Insurance Broker.

      • Article (11) Accounting and Audit

        11-1

        An Insurance Broker must appoint an external auditor approved by the Central Bank to audit, on an annual basis:

          

        a.

        the financial statements or consolidated financial statements of the Insurance Broker prepared in accordance with the accepted accounting standards and practices.

          

        b.

        the systems and controls of the Insurance Brokerage operations provided by the Insurance Broker.

        11-2

        Upon request by the Central Bank, the appointed external auditor must submit, directly or through the Insurance Broker, a report of the audit in a form and within a timeframe acceptable to the Central Bank.

        11-3

        In addition to the report of audit, the Central Bank may request from the external auditor to:

          

        a.

        submit any additional information in relation to the audit, if the Central Bank considers it necessary; and

          

        b.

        enlarge or extend the scope of the audit; carry out any other examination.

        11-4

        The external auditor must verify from all Companies with whom the Insurance Broker deals with on such accounts, when conducting the audit.

      • Article (12) Conduct of Business

        12-1

        An Insurance Broker, Insurance Broker’s Representatives and Staff must:

          

        a.

        Act in an honest, fair and transparent manner in their relations with Clients.

          

        b.

        Act in the best interests of the Client when comparing insurance products in terms of the conditions, rates and the scope of insurance cover, as well as in terms of choosing to work with a certain Company rather than others.

          

        c.

        Provide the Company with the accurate and adequate information necessary for underwriting purposes concerning the Client, including Personal Data.

          

        d.

        Obtain a written authorization from all of its Clients to perform the Insurance Brokerage business, according to the form designed for this purpose and approved by the Central Bank, and must not restrict the Client’s freedom to cancel the authorization, and not to charge the Client for any financial costs as a result thereof.

          

        e.

        When an Insurance Broker recommends a certain Insurance Policy to the Client, such a recommendation must be consistent with the Client’s insurance demands and needs. The Insurance Broker must explain to the Client why a particular Insurance Policy would best meet their demands and needs. The Insurance Broker must also inform the Client when the recommendation was made based on the offer from a single or a limited range of Companies.

          

        f.

        Explain to the Client the importance of disclosure of relevant information when submitting an application for insurance; the consequences of concealing or providing inaccurate or invalid data or documents; the need to disclose any subsequent changes that may affect the insurance cover; and the Client’s full responsibility for data, information and documents provided to the Insurance Broker or the Company.

          

        g.

        Notify the Client about the following features of the Insurance Policy in a clear, simplified, accurate and not misleading manner, taking into account the knowledge and experience of the Client:

            

        I.

        information about the type of insurance;

            

        II.

        a summary of the insurance cover, including the main risks insured, the insured sum and, where applicable, the geographical scope and a summary of the excluded risks and any other related information that might influence the Client’s decision;

            

        III.

        the means of payment of premiums and the duration of payments;

            

        IV.

        main exclusions where claims cannot be made;

            

        V.

        obligations of the Client at the start of the contract;

            

        VI.

        the term of the Insurance Policy including the start and end dates of the contract; and

            

        VII.

        the means of terminating the Insurance Policy.

            

        VIII.

        When selling investment linked life insurance policies, the Insurance Broker must inform the Client of the nature of this product and the risks associated with it.

          

        h.

        Have in place the necessary electronic systems to support all Insurance Brokerage operations.

          

        i.

        Comply with legislation concerning anti-money laundering and combating the financing of terrorism and financing of illegal organisations.

          

        j.

        Comply with Regulations concerning consumer protection and code of conduct and ethics to be observed by Companies and Insurance-Related Professions.

          

        k.

        Respond to claim filings, provide claim forms and explain the procedures that must be followed by the Client in case the insured risk materialises.

          

        l.

        Acknowledge to Clients the receipt of the claim and any missing information and documents within two (2) business days from the receipt of the claim application form.

          

        m.

        Inform Clients of the progress of filed claims, at least every fifteen (15) days.

          

        n.

        Assist in the negotiations with the Company regarding the claims arising from the occurrence of the insured risks.

          

        o.

        Notify the Client immediately in writing of the Company's decision to accept or reject the provision of the insurance cover related to such claims and follow up on them.

          

        p.

        Provide technical advice and consultation, and inform the Client in writing of the best conditions and rates of the Companies. An Insurance Broker must keep relevant documentation in duly organized records. In addition, it must negotiate in favour of the Client and represent the Client before the Company without receiving from it any Remuneration for such negotiation.

          

        q.

        a comparison between the prices and coverage of Insurance Policies tailored to the Client’s needs and offered by different Companies, then recommend an Insurance Policy and explain to the Client the reason for choosing it and the conditions, benefits, and exclusions it includes;

          

        r.

        use official email address belonging to the Insurance Broker.

        12-2

        Insurance Brokers must handle complaints, as follows:

          

        a.

        accept complaints either by phone or in writing (e.g., letters, e-mails, fax);

          

        b.

        explain the procedures to be followed when filing a complaint;

          

        c.

        provide Clients with the contact reference to follow up on the filed complaint;

          

        d.

        respond to Clients’ complaints within two (2) business days from the reception of correspondence; and

          

        e.

        have in place an electronic system for recording and monitoring complaints.

        12-3

        An Insurance Broker must inform the Client in writing within twenty (20) days before the expiry date of the Insurance Policy so that the Client may request in writing the following:

          

        a.

        renewal of the Insurance Policy with the same Insurance Broker or not; or

          

        b.

        renewal of the Insurance Policy with the same Company under the same conditions, or with the same Company under different conditions, or with another Company according to another proposal presented by the Insurance Broker to the Client.

        12-4

        An Insurance Broker and its Staff are prohibited from:

          

        a.

        engaging in the activities of Insurance-Related Professions other than Insurance Brokerage;

          

        b.

        managing or bearing any insurance risks;

          

        c.

        assigning the Insurance Brokerage operations to other Insurance Brokers, without obtaining the written consent of the Client and the Company. Multinational operations that require Insurance Brokers Licensed by the Central Bank and brokers from other jurisdictions must ensure compliance with this Regulation;

          

        d.

        engaging in soliciting, negotiating or selling an Insurance Policy to a potential Client which unnecessarily replaces an existing Insurance Policy, for the purpose of increasing turnover and generating additional Remuneration (policy churning);

          

        e.

        soliciting/ routing Insurance Policies through any Person or entity that is not Licensed by the Central Bank;

          

        f.

        concluding any written or oral agreements, including any referral agreements for Remuneration or otherwise, allowing any Person or entity that is not regulated by the Central Bank to use, directly or indirectly, any employees or agents of Licensed entities as intermediaries to solicit Insurance Policies;

          

        g.

        Paying, receiving or sharing with any remuneration to/from other Insurance Related Professions practitioners; and

          

        h.

        offering any kind of discounts to Clients from the Remuneration they receive from Companies. Insurance Brokers and their Staff must avoid any actions that would lead to market manipulation in terms of pricing. They must implement the Company's underwriting guidelines, and any discounts offered to Clients must come directly from the Company.

          

        i.

        sharing, exchanging, disclosing or transmitting of confidential information which the Insurance Broker is authorized to access pursuant to applicable laws and regulations, to any third party.

          

        j.

        using unofficial or personal email addresses, such as (Hotmail, yahoo, Gmail., .etc.).

          

        k.

        Dealing in cash in any matter related to Insurance Brokerage.

        12-5

        An Insurance Broker must disclose and explain to the Client before inception, at least the following:

          

        a.

        it acts as an Insurance Broker;

          

        b.

        it is Licensed and supervised by the Central Bank and can be verified in that capacity;

          

        c.

        the type of business for which they are Licensed;

          

        d.

        the services provided, including whether they offer products from a full range of Companies, from a limited range or from a single Company;

          

        e.

        cancellation rights in respect of the intermediation services;

          

        f.

        the nature and basis of Remuneration that it receives from Companies, and when requested by Clients the amount of such especially when selling investment linked life insurance policies;

          

        g.

        the terms and conditions of business between themselves and the Client in a fair, clear and not misleading manner;

          

        h.

        having entered into Brokerage Agreements with Companies; and

          

        i.

        the existence of any potential Conflict of Interest relevant for the Client.

      • Article (13) Financial Reporting

        13-1

        An Insurance Broker must maintain appropriate records, prepare financial statements inaccordance with the International Financial Reporting Standards (IFRS) and Central Bank Regulations.

        13-2

        An Insurance Broker must submit within ninety (90) days of the end of the financial year:

          

        a.

        a detailed report signed by the Insurance Broker’s Representatives, which must include all the Insurance Brokerage activities undertaken by the Insurance Broker throughout the year; and

          

        b.

        final annual financial reports, which must be audited and accompanied by the external auditor’s report.

      • Article (14) Reporting Requirements

        14-1

        The Insurance Broker must submit to the Central Bank the quarterly interim financial statements reviewed by the external auditor and accompanied by the following, as a minimum:

          

        a.

        financial disclosures according to the International Financial Reporting Standards (IFRS);

          

        b.

        a statement of (debt/credit) accounts distributed according to the due dates;

          

        d.

        a statement of the names of the Companies with which the Insurance Broker deals with, which must include the gross Premiums and gross Remuneration, which must be approved and signed by the external auditor;

          

        e.

        a statement concerning the number and nature of complaints, the products involved, stated reasons for complaints, resolution rates, and/or where litigation arises from complaints; and

          

        f.

        any other information that the Central Bank requires.

          

        g.

        An Insurance Broker must submit to the Central Bank an interim report signed by the Insurance Broker’s Representatives on a quarterly basis, which must include all the Insurance Brokerage activities undertaken during the relevant period, within thirty (30) days from the end of the quarter.

        14-2

        An Insurance Broker must immediately notify the Central Bank on all Matters of Significance, and must present all the relevant documents in that regard.

      • Article (15) Record Keeping

        15-1

        An Insurance Broker must keep all necessary records on Personal Data for a period of ten (10) years from the date of receipt of such data, unless otherwise required by other applicable laws or the Central Bank.

        15-2

        Where any material change affects the accuracy and completeness of information provided in an application, the Applicant or the Insurance Broker, as the case may be, must immediately notify the Central Bank of such change and provide all necessary information and documents.

      • Article (16) Protection of Personal Data and Cyber Security

        16.1

        Insurance Brokers must have in place and maintain adequate policies and procedures to:

          

        a.

        identify, prevent and resolve any data security breaches; and

          

        b.

        protect Personal Data.

        16-2

        Personal Data must be stored and maintained in the State. The Brokers must also establish a safe and secure backup of all Personal Data in a separate location for the required period of retention of ten (10) years.

        16-3

        Insurance Brokers must comply with applicable regulatory requirements and standards on data protection. They must control, process and retain only Personal Data that is necessary for the provision of Insurance Brokerage services.

        16-4

        An Insurance Broker may disclose Clients’ Personal Data to:

          

        a.

        a third party where the disclosure is made with the prior written consent of the Client or is required pursuant to applicable laws;

          

        b.

        the Central Bank;

          

        c.

        other regulatory authorities upon a request, following prior approval of the Central Bank;

          

        d.

        courts of law in the State;

          

        e.

        other governmental bodies which have lawfully authorized rights to access; and

          

        f.

        insurance related matters to Companies, the Emirates Insurance Federation and licensed practitioners of Insurance-Related Professions, to the extent they are necessary for underwriting or Claim Settlement.

        16-5

        An Insurance Broker must adequately manage cyber security risks through the risk governance process. It must commit adequate skilled resources to ensure its capability to identify the risk, protect its critical services against the attack, contain the impact of cyber security incidents and restore the services.

        16-6

        An Insurance Broker must establish a cyber incident response and management plan to swiftly isolate and neutralize a cyber threat and to resume affected services as soon as possible. The plan shall describe procedures to respond to plausible cyber threat scenarios.

      • Article (17) Outsourcing

        17-1

        When Outsourcing services and processes to service providers Insurance Brokers must contractually ensure that such third parties comply with the requirements of this Regulation.

        17-2

        Insurance Brokers must remain fully liable for any acts of the service providers.

        17-3

        Insurance Brokers are responsible for maintaining appropriate training and qualifications of their service providers.

        17-4

        Outsourcing material business activities is subject to the non-objection of the Central Bank. When requesting the non-objection of the Central Bank for Outsourcing business activities, Insurance Brokers must provide the Central Bank with the following at a minimum:

          

        a.

        a brief explanation of the business activity to be Outsourced;

          

        b.

        a summary of the materiality assessment;

          

        c.

        a summary of the risk assessment;

          

        d.

        a summary of the due diligence performed and its outcome;

          

        e.

        a confirmation of the agreement of the internal audit function and the compliance function;

          

        f.

        an overview of any closely related Outsourcing agreements; and 

          

        g.

        evidence of the approval of the proposed Outsourcing by the Insurance Broker’s Representatives. The Central Bank within (20) business days will either grant the non-objection, request further information, or decline the request.

        17-5

        The Central Bank will assess requests for non-objection on their individual merits on a case-by-case basis, and may or may not permit the Outsourcing of business activities, and key management and Control Functions. Insurance Brokers are encouraged to discuss their material Outsourcing plans early and coordinate with the Central Bank to avoid the non-objection process delaying the Outsourcing.

        17-6

        An Insurance Broker must not Outsource any activities outside the State.

      • Article (18) Powers of the Central Bank

        The Central Bank may decide to:

        18-1

        set caps on Remuneration (for certain lines of business);

        18-2

        liquidate bank guarantees for Insurance Brokers who are not able to meet their liabilities; and

        18-3

        increase or decrease the minimum capital and bank guarantee requirements for Insurance Brokers, depending on the nature, scale, complexity of their operations and their ability to meet their liabilities, on a case-by-case basis.

        18-4

        increase the minimum percentage of the UAE national shareholding requirements to the total paid up capital of the Insurance Broker.

      • Article (20) Cancellation of Previous Legal Instruments

        • Article (19) Mergers, Liquidations, Bankruptcies, Voluntary Cancellation and Financial Restructuring

          19-1

          An Insurance Broker must not merge, amalgamate or enter into a joint venture with any Person, without the prior written approval of the Central Bank.

          19-2

          An Insurance Broker may submit a voluntary cancellation request by submitting the following documents:

            

          a.

          a letter explaining the reasons for cancellation and the plan for closure;

            

          b.

          the partners’ approval of the cancellation decision;

            

          c.

          clearance letters from the Companies that the Insurance Broker is dealing with; and

            

          d.

          After the approval from the Central Bank, an announcement must be published in two daily newspapers in the State, one in Arabic and the other in English, including the commencement of cancellation procedures and inviting those who object to the cancellation. The external auditor of the Insurance Broker must confirm that there no liabilities towards Companies or Clients, or all liabilities have been settled.

        • Article (21) Enforcement

          21-1

          Violation of any provision of this Regulation may be subject to supervisory action and sanctions as deemed appropriate by the Central Bank.

          21-2

          Without prejudice to the provisions of Central Bank Laws, supervisory action and sanctions by the Central Bank may include withdrawing, replacing or restricting the powers of the Insurance Broker’s Representatives, Senior Management or Staff, providing for the interim management of the Insurance Broker, or barring individuals from the UAE insurance sector.

          21-3

          Imposing any supervisory action and sanctions by the Central Bank shall not prejudice the civil and criminal liability of the Insurance Broker or the Insurance Broker’s Representatives or any of its Staff for the committed violations.

        • Article (22) Interpretation of Regulation

          The Regulatory Development Department of the Central Bank shall be the exclusive reference for interpretation of the provisions of this Regulation.

        • Article (23) Publication and Application

          This Regulation shall be published in the Official Gazette in both Arabic and English and shall come into effect six (6) months from the date of publication. Insurance Brokers and Companies must regularize their status in accordance with the provisions of this Regulation before it enters into effect.

           

    • Insurance Authority Board of Directors Resolution No. 15 of 2013 Concerning Insurance Brokerage Regulations

      IA-BOD-RES 15/2013 Effective from 9/10/2013
      This regulation will remain in force until 15 February 2025, after which it will be replaced by the updated Insurance Brokers’ Regulation (C 1/2024)
      This Resolution has been amended by the Insurance Authority Board of Directors' Resolution No. (20) of 2014. You are viewing the latest version. Please find the PDF of the previous version on the table below.

      version 2 (consolidated as of 30/10/2015)

      Pdf download

      version 1 (effective from 09/10/2013)

      Pdf download

       

      The Chairman of the Insurance Authority,

      Having perused:

      1. - The Federal Law No. 1 of 1972 concerning the Functions of Ministries and the Powers of Ministers, and the amending laws thereof;
         
      2. - The Federal law No. 8 of 1984 concerning Commercial Companies, and the amendments thereto;
         
      3. - The Federal law No. 6 of 1985 concerning Islamic Banks, Financial Institutions and Investment Companies;
         
      4. - The Federal law No. 6 of 2002 concerning Criminalization of Money Laundering;
         
      5. - The Federal law No. 8 of 2004 concerning the Financial Free Zones;
         
      6. - The Federal law No. 6 of 2007 concerning the Establishment of the Insurance Authority and the Regulation of Insurance Business;
         
      7. - Cabinet Resolution No. 28 of 2007 concerning the Implementing Regulations of the Federal Law No. 8 of 2004 concerning the Financial Free Zones;
         
      8. - Cabinet Resolution No. 23 of 2009 concerning the Fees for Supervision, Control and Insurance Transactions;
         
      9. - Ministry of Economy Resolution No. 543 of 2006 concerning the Regulations of the Insurance Consultation Practice;
         
      10. - Insurance Authority Board of Directors Resolution No. 2 of 2009 issuing the Implementing Regulations of the Federal Law No. 6 of 2007 concerning the Establishment of the Insurance Authority and the regulation of Insurance Business; and
         
      11. - Based on the recommendation of the Director General of the Insurance Authority and the approval of the Board of Directors;

      Has decided the following:

      • Article 1 Definitions

        Unless the context otherwise requires, the following words and expressions shall have the meanings ascribed thereto below:
         

        The State / UAE The United Arab Emirates.
        The LawThe Federal Law No. 6 of 2007 concerning the Establishment of the Insurance Authority and the Regulation of Insurance Business.
        Implementing Regulations The implementing Regulations of the Law.
        IAThe Insurance Authority.
        BoardThe Board of Directors of the Insurance Authority.
        DirectorThe Director General of the Insurance Authority.
        Free Zone Any financial free zone established in the UAE pursuant to the provisions of the Federal Law No. 8 of 2004 concerning the Financial Free Zones.
        Company: An insurance company incorporated and licensed to practice insurance activities in the UAE, or a foreign insurance company licensed to practice insurance activities in the UAE, whether through a branch or an insurance agent.
        Client: A person for whom the Insurance Broker practices the Insurance Brokerage business in accordance with the provisions of these Regulations.
        Insurance Policy: The contract concluded between the Company and the Client containing the rights and obligations of each party or the rights of the Beneficiary and any endorsement thereto.
        Beneficiary: A person who acquires the insurance policy rights from the beginning, or to whom such rights have been legally transferred.
        Insurance Brokerage: Intermediation (brokerage) in insurance and reinsurance transactions between the Company and the Client in return for a commission paid by the Company.
        Insurance Broker: A juridical person licensed by the IA to practice the Insurance Brokerage activity.
          

         

      • Chapter I General Provisions

        • Article 2

          1. The provisions of these Regulations shall apply to all Insurance Brokers operating in the UAE.
             
          2. No one may practice the Insurance Brokerage activity in the UAE without obtaining a license from the IA. Such license shall be renewed annually in accordance with the provisions of these Regulations.
        • Article 3

          1. An Insurance Broker may combine brokerage business in personal insurances and funds accumulation operations on the one hand, and brokerage of property and liability insurance on the other hand, provided that both classes of business are completely separated in terms of books and records or personnel working in each class.
             
          2. An Insurance Broker may be specialized in any one of insurance types or insurance classes.
             
          3. An Insurance Broker may not combine their role as an insurance broker on the one hand and the role of an insurance agent, insurance consultant, surveyor and loss adjuster, or actuary on the other hand.
             
          4. An Insurance Broker may combine the Insurance Brokerage business in accordance with the provisions of these Regulations and the re-insurance brokerage business, subject to not combining both roles (insurance broker and re-insurance broker) for the same transaction and for the same party he works for.
             
          5. An Insurance Broker may not be partner or agent of any other Insurance Broker.
      • Chapter II Licensing and Registration

        • Licensing and Registration Conditions

          • Article 4

            I. The licensing requirements for Insurance Brokerage are as follows:
             

            1. The applicant must be a juridical person having one of the following forms:
               
              1. A company incorporated in the UAE in accordance with the Commercial Companies Law, having the objective of practicing the Insurance Brokerage activity.
                 
              2. A branch of a company incorporated in a financial free zone in the UAE, or a branch of a foreign company, provided that such company is licensed to practice this activity in the said financial free zone or in the country of origin in the same insurance type and class; and should be subject to the control of a counterpart supervisory authority, with a minimum five years of practice in Insurance Brokerage, and subject to any controls or conditions set by the IA.
                 
            2. The paid capital may not be less than (AED 3,000,000) three million Dirhams for a company incorporated in the UAE and (AED 10,000,000) ten million Dirhams for the branch of a company incorporated in a financial free zone or the branch of a foreign company.
               
            3. A Letter of Guarantee produced by a bank in favor of the IA must be submitted in accordance with the terms and conditions referred to herein.
               
            4. A professional indemnity insurance policy in favor of the IA must be submitted in accordance with the terms and conditions referred to herein.
               
            5. The technical and administrative staff required for practicing the activity must be appointed in accordance with the provisions of these Regulations.
               
            6. A suitable headquarters, software and technical systems required to practice the activity must be provided.
               
            7. An internal control system to ensure the sound application of law, regulations, instructions, resolutions and circulars issued thereunder must be provided.
               
            8. A true copy of the agreement concluded between the license applicant and a bank operating in the UAE concerning the account designated for the practice of Insurance Brokerage must be submitted.
               
            9. Full payment of the prescribed fees must be made.
               
            10. To comply with any additional conditions or requirements determined by the IA.

            II. An Insurance Broker must continuously satisfy all the license conditions.

        • Technical and Administrative Staff

          • Article 5

            1. Individuals to be appointed in the technical and administrative staff must satisfy the following conditions:
               
              1. Be a natural person enjoying full capacity.
                 
              2. Be of good conduct and behavior, and has never been sentenced for a freedom restricting punishment in a moral turpitude crime without being rehabilitated.
                 
              3. Has not stopped the payment of his commercial debts even if not associated with bankruptcy declaration, or has been judged bankrupt without being rehabilitated.
                 
            2. An Insurance Broker shall notify the IA of the appointment of any accredited personnel, and of any modification or alteration that may arise regarding their transfer or termination, stating the reasons thereof. An Insurance Broker shall also notify the IA once any of the accredited posts becomes vacant and an alternative is appointed until such vacant post is permanently filled within a maximum period of 60 business days from the date of vacancy.
          • Article 6

            1. An Insurance Broker must continuously have the technical staff required to practice the
              licensed activity and must at least appoint employees to assuming the following jobs:
               
              1. General Manager or Chief Executive Officer.
                 
              2. Operations Manager.
                 
              3. Internal Auditor, (natural or corporate person).
                 
              4. At least one specialized employee for each licensed insurance type or class.
                 
            2. The shall hold a decision to determine the qualifications, experience, duties and restrictions for each one of the jobs listed in clause (1) of this article.
               
            3. No one may combine two jobs of the jobs approved by the IA at the same time.
        • Application for License

          • Article 7

            The application of a license to practice the activities of the Insurance Brokerage shall be submitted to the IA according to the designated form enclosing information, data and documents supporting the application for license, particularly:
             

            1. The legal form of the applicant, along with a report stating the names of the partners, members of the board of directors or management board and the executive management.
               
            2. An acknowledgment that the partners and the Director General or Chief Executive Officer have never been declared bankrupt, as well as providing certificates of good conduct confirming that none of them has been sentenced for a freedom restricting punishment.
               
            3. A statement showing any legal or judicial obligations or liabilities related to the applicant.
               
            4. A statement showing the technical systems used and the work procedures proposed for practicing the activity of Insurance Brokerage.
               
            5. Types and classes of the insurance business applied for.
               
            6. Training and Emiratization plan for AUE nationals.
               
            7. In addition to the above, a branch of a foreign company, or a branch of a company incorporated in a financial free zone shall submit the following:
               
              1. An official certificate issued by the competent authority showing the company’s
                incorporation, registration and licensing to practice the activity of Insurance
                Brokerage in the types and classes of insurance to be practiced in the UAE.
                 
              2. A copy of the financial statements for the last two years audited, approved and
                prepared in the UAE Dirhams.
                 
              3. A true copy of the board of directors' or management board’s decision approving
                the opening of a branch in the UAE.
                 
            8. An undertaking to satisfy all license conditions required in case of approving the application for license within the period determined by the IA; otherwise the approval shall be null and void; as well as undertaking not to start practicing the activity before the IA ensures that the applicant has satisfied all license conditions and IA’s approval in this regard is issued.
               
            9. Any other documents and data required by the IA.
        • Considering the Application for License

          • Article 8

            1. The IA shall issue its decision of approving or rejecting the application for license within a maximum period of 20 working days as from the date of submitting the complete application. The IA may subject its approval to grant the license to the conditions and restrictions at the discretion of the IA, or may suspend the granting of licenses due to the requirements of the public interest for the period it deems suitable.
               
            2. Once the application for license is approved, the Insurance Broker shall be registered in the IA's Insurance Brokers Register.
               
            3. An Insurance Broker may add a type or class of insurance to the granted license under an application to be submitted to the IA on the form designated for this purpose after meeting all the related conditions and requirements.
        • Term and Renewal of the License

          • Article 9

            1. The term of license shall be one year expiring at the end of December every year. The validity period of the first license shall be from the date of issuance through the end of December of the same year.
               
            2. The license shall be renewable under an application to be submitted to the IA at least one month prior to the expiry date after ensuring that the Insurance Broker has continuously abided to the provisions of these Regulations and has paid the prescribed annual renewal fees. The IA shall issue its decision on the complete application within 10 working days as from the date of submitting the same.
               
            3. The IA may suspend the Insurance Broker from practicing the activity in case of failure to submit a complete application for license renewal.
        • Temporary Suspension and Cancellation of the License

          • Article 10

            1. An Insurance Broker wishing to temporarily suspend the activity practice, or an Insurance Broker having a contingent reason preventing it from practicing the activity, must submit an application to the IA to temporarily suspend the activity practice and to continue practicing the activity until the IA's decision is issued. The IA may reject or approve the application for suspension after meeting all the requirements deemed appropriate by the IA in a manner achieving the interests of companies, clients and beneficiaries, provided that the suspension period may not exceed (3) months as from the date of approval thereon. Such period may be extended for another similar period subject to the Insurance Broker continuing to comply with the conditions and requirements deemed necessary by the IA to reinstate the license. The Insurance Broker shall maintain the letter of guarantee and professional indemnity insurance policy during such period.
               
            2. The Insurance Broker may not practice their activity during the suspension period. In all cases, the Insurance Broker may request to resume the practice before the end of the suspension period whether the suspension was optional or when the preventing cause ceases to exist.
               
            3. An Insurance Broker wishing to suspend the practice permanently shall submit an application to the IA, and shall continue to practice the activity until it has satisfied all requirements for the cancellation of the license as determined by the IA and the issuance of the IA's decision in this regard.
               

            The cancellation decision shall be issued by the IA and immediately published in two widely circulated daily newspapers in the UAE one in Arabic language and the other in English language at the Insurance Broker's expense. The letter of guarantee shall be recovered and the professional indemnity insurance policy shall be terminated after the elapse of 3 months as from the date of publication in case the IA approved the same after the settlement of all the Insurance Broker's transactions and ensuring that there are no liabilities thereon towards the IA or towards other companies, clients or beneficiaries arising from its practice of the Insurance Brokerage activity.

      • Chapter III Letter of Guarantee and Professional Indemnity Insurance Policy Provisions

        • Conditions for Issuing the Letter of Guarantee

          • Article 11

            The Letter of Guarantee shall be:
             

            1. Issued by a bank operating in the UAE, in favor of the Chairman of the IA Board of Directors in his capacity according to the form designated by the IA.
               
            2. Unconditional, unrestricted, payable on demand – by the IA – at any time and may only be canceled under a written consent of the IA.
               
            3. Issued for the purpose of guaranteeing the settlement of the Insurance Broker's transactions and meeting their obligations arising from practicing Insurance Brokerage towards companies, clients or beneficiaries, or in implementation of the IA's decisions.
               
            4. Its value may not be less than (AED 3,000,000) three million Dirhams for companies incorporated in the UAE and (AED 1,000,000) one million Dirhams for any branch thereof. For the branch of a foreign company or companies incorporated in any financial free zone, its value may not be less than (AED 5,000,000) five million Dirhams for the branch and (AED 3,000,000) three million Dirhams for any addition branch thereof in the UAE.
               
            5. At any time, the IA shall have the right to liquidate the Letter of Guarantee submitted by the Insurance Broker in full or in part to ensure meeting its liabilities resulting from practicing its activity towards the companies, clients or beneficiaries, or in implementation of the IA's decisions.
        • Conditions for Issuing the Professional Indemnity Insurance Policy

          • Article 12

            The Professional Indemnity Policy shall be:
             

            1. Issued by a company licensed by and registered with the IA, after the IA's approval of the conditions of such policy.
               
            2. The insured shall be the Insurance Broker and the beneficiary shall be the Chairman of the IA Board of Directors in his capacity.
               
            3. Issued for the purpose of guaranteeing any liability arising from damages resulting from practicing Insurance Brokerage, unintentional error, omission and unintentional negligence.
               
            4. Valid throughout the license term and applicable to the annual renewal of the license. The Insurance Brokerage activity may not be practiced unless such policy is available and valid.
               
            5. The insured sum under the policy may not be less than (AED 2,000,000) two million Dirhams for companies incorporated in the UAE, provided that the deductible amount may not exceed (AED 30,000) thirty thousand Dirhams for each accident. As for the branch of a foreign company or companies incorporated in any financial free zone, the insured sum under the policy may not be less than (AED 3,000,000) three million Dirhams, provided that the deductible amount may not exceed (AED 50,000) fifty thousand Dirhams for each accident.
               
            6. Any amendment or alternation to the insurance policy may only be made under the written approval of the IA.
      • Chapter IV Obligations of the Insurance Broker

        • Internal Bylaws of the Insurance Broker

          • Article 13

            To practice its activity, the Insurance Broker shall comply with the following:
             

            1. Producing of written internal bylaws within (3) months from the date of obtaining the license, and providing the IA with a copy thereof, subject to amendment of such bylaws in accordance with any amendments made to the Law, regulations, instructions, resolutions and circulars issued by the IA and notifying the IA thereof. Such internal bylaws shall include the following data:
               
              1. The documentary cycle to be followed as of the beginning of dealing with a company and client, until the full completion of the insurance transaction.
                 
              2. The organizational structure of the Insurance Broker showing the actual functions, responsibilities and powers of directors and other employees working for the Insurance Broker.
                 
              3. The relationship between the headquarters of the Insurance Broker and its branches; and determining the powers that the branch is authorized to practice.
                 
              4. Correspondences recording system.
                 
              5. Internal record-keeping system.
                 
              6. Clients' complaints recording system.
                 
            2. Periodical review and continuous update of the internal control system in a manner to ensure the sound application of the Law, regulations, instructions, resolutions and circulars issued by the IA.
               
            3. Producing an Operational Guide for risk management to include the listing and definition of the specific risks that could be encountered and how to address them once realized. The Guide shall be updated and reviewed periodically as appropriate to the nature of the Insurance Broker business and according to the applicable rules in this regard.
               
            4. Development of a professional code of conduct for the Insurance Broker employees; and supervising and organizing their undertakings to ensure compliance with the Law, regulations, instructions, resolutions and circulars issued by the IA, especially those related to trust, integrity and conflict of interest.
               
            5. When practicing the activity of Insurance Brokerage, the Insurance Broker and their branches shall be independent from any other party in terms of place or organizational, technical or administrational aspects.
               
            6. Cooperation and coordination with the internal controller, enabling him/her to perform the assigned tasks and notifying the IA of any violation of the Law or the regulations, instructions, resolutions or rules issued thereunder, or the applicable internal bylaws.
               
            7. Not to dismiss the internal controller except by a decision of the board of directors or management board of the Insurance Broker, provided that the IA and the internal controller are notified of the dismissal decision at least (30) working days before such dismissal, explaining the causes and justifications of the dismissal.
        • Obligations of the Insurance Broker towards the IA

          • Article 14

            The Insurance Broker shall comply with the following obligations towards the IA:
             

            1. Open an independent account with a bank operating in the UAE to be designated for the financial transactions related only to the Insurance Brokerage business. Such account shall be subject to audit by the IA.
               
            2. Complete separation between the Insurance Broker's personal accounts and the accounts related to the Insurance Brokerage practice.
               
            3. Refrain from obtaining any interests on the funds deposited in the account of the Insurance Brokerage business, or from holding such funds in the form of time deposits, or to obtain credit facilities or bank loans secured by such funds.
               
            4. Maintain the financial solvency required to practice the activity in a manner to ensure the continued performance of its obligations according to the rules set by the IA.
               
            5. Abide by the limits of insurance types and classes which the Insurance Broker is licensed to practice.
               
            6. Not to manage or bear any insurance risks.
               
            7. Conclude Insurance Brokerage agreements with companies; and providing the IA with true copies thereof within a maximum period of one week after the date of their signature, as well as any amendments or alternations thereon once made.
               
            8. Conclude at least two Insurance Brokerage agreements with companies within (60) working days after the license date.
               
            9. Not to depend only on one company at any time to practice the activity in the UAE.
               
            10. Maintain the records, documents, accounts and financial statements that show the Insurance Broker's financial position, transactions, Insurance Brokerage agreements concluded with companies, authorizations issued by Clients, Clients' data, copies of insurance policies issued to such clients, and any other documents or data related to the practice for a period of (10) years, provided that back-up copies of all such statements and documents are maintained for the same period in order to protect the clients’ data and transactions against any causes of damage. The IA shall be allowed access to obtain and review same on demand.
               
            11. The fiscal year shall commence on the first day of January and ends on the thirty-first day of December every year, provided that the balance sheet and the closing accounts are prepared in the UAE Dirham.
               
            12. The Insurance Broker shall provide the IA with the following reports:
               
              1. A quarterly report signed by the Chairman of the Board of Directors, the Director General or the Chief Executive Officer on the Insurance Brokerage business and the accounts related thereto, to be submitted within a maximum period of 30 days from the end of the quarterly term.
                 
              2. An annual report signed by the Board of Directors or Management Board, containing all Insurance Brokerage business carried out by the Broker during the year, and the audited final annual financial statements, enclosing the External Auditor’s Report, to be submitted within a maximum period of 90 days from the end of the fiscal year, as well as providing the Authority with copies of insurance brokerage agreements signed with insurance companies during the fiscal year.
                 
              3. Any other reports or statements required by the IA.
                 
            13. To immediately notify the IA of any change occurring on the data or documents based on which the license was granted within (5) working days from the date of occurrence of such change; and of any deficit affecting its financial position.
               
            14. Inform the IA of the content of advertising campaigns to promote its services before presenting to the public.
               
            15. Not to publish or promote any incorrect data, information or transactions.
               
            16. Insert their name and registration number with the IA on all its papers, correspondence and documents in both Arabic and English languages.
               
            17. Not to assign any business carried out by them to another Insurance Broker(s), unless with the consent of the IA, companies, clients or beneficiaries, subject to notifying the IA of the details of such transfer in case of temporary suspension or cancelation of the license, voluntary or due to a penalty.
               
            18. Comply with the laws and any decisions or instructions on combating money laundry and terrorist finance.
               
            19. Comply with all regulatory rules, procedures and requirements as prescribed by the IA regarding internal controls and the undertakings of the internal auditor.
               
            20. Practice the licensed activity with due diligence in accordance with the provisions of the Law and regulations and the conditions and controls based on which the license was issued; observe commercial norms; nurture Clients' interests and abide by the rules of professional conduct and integrity in practicing its activity with the clients, companies and third parties.
        • The Insurance Broker’s Obligations towards the Company

          • Article 15

            The Insurance Broker shall comply with the following obligations towards the Company:
             

            1. Sign an Insurance Brokerage agreement with each Company they deal with. The agreement must be executed in Arabic language, signed by both parties and authenticated before the official authorities. It shall remain in force throughout the period of dealing with the respective Company, and shall include the rights and obligations of each party in conformity with the provisions of these Regulations, particularly the following:
               
              1. The term of the agreement, how and why it can be terminated;
                 
              2. Types and classes of insurance subject of brokerage;
                 
              3. Geographical scope;
                 
              4. A provision authorizing the Insurance Broker to receive the premiums in favor of the Company in cases where the Insurance Broker is permitted to collect the premiums. However, the Insurance Broker may not use the collected premiums for any other purpose.
                 
              5. The agreed commission for the Insurance Broker, the manner to calculate such, when its due date for payment and its collection procedures.
                 
            2. The agreement may not include the following:

               
              1. Authorization to the Insurance Broker to issue insurance policies or endorsements thereto, or to amend policies or endorsements except for the issuance of motor insurance certificates if both parties wish so.
                 
              2. Authorization to the Insurance Broker to receive compensations payable to clients or beneficiaries to be paid to the entitled recipients.
                 
              3. Preventing the Insurance Broker from practicing its activity with any other company.
                 
            3. Submit all customer information and data which may affect the decision to be taken by the Company regarding the insurance cover, rates and conditions, in order to enable the Company to assess the risks to be insured or to renew its insurance.
               
            4. Follow up on the collection of premiums in all types and classes of insurance licensed to be practiced by the Insurance Broker.
               
            5. Receive insurance premiums from clients, excluding premiums related to insurance types and classes shown below which must be paid by the clients directly to the Company or to be deposited into the Company’s account:
               
              1. Life insurance and fund accumulation operations;
                 
              2. Group health insurance;
                 
              3. Marine and air cargo insurance;
                 
              4. Hull insurance; and
                 
              5. Petroleum insurance.
                 
            6. Deposit insurance premiums collected by the Insurance Broker in the cases where it is permitted to receiving such premiums in the account designated for the practice of Insurance Brokerage.
               
            7. Transfer the received premiums to the Company within the period set forth in the agreement signed with the Company without deducting any amounts or interests due from such premiums; in addition to providing the Company with a detailed report thereon.
               
            8. Not to use the letterhead of the Company - for which the Insurance Broker works - for their own correspondence or correspondence to their Clients.
               
            9. The Insurance Broker may not, directly or indirectly, seek the cancellation of an insurance policy issued by the Company through another Insurance Broker with the aim of re-issuing the same through them. In this case, the new policy will not be counted when calculating their entitlements.
               
            10. The Insurance Broker shall maintain the confidentiality of conditions, rates, information and data obtained from the Company and not to disclose such information to other companies.
        • The Insurance Broker’s Obligations towards the Clients

          • Article 16

            The Insurance Broker shall comply with the following obligations towards the Clients:
             

            1. Sign a written authorization with all its Clients to authorize it to perform the Insurance
              Brokerage business according to the form designed for this purpose and approved by the
              IA. The authorization shall particularly include the following:
               
              1. The authorities of the Insurance Broker to communicate with any company
                licensed by the IA or with any licensed company nominated by the Client.
                 
              2. The responsibilities and authorities of the Insurance Broker regarding the claimprocedures for compensation which may be entitled by a Client who reports an
                insured accident.
                 
            2. Not to restrict the Client’s freedom to withdraw or cancel the authorization, and not to charge the Client for any financial costs as a result thereof.
               
            3. Provide technical advice and consultation, and inform the Client of the best conditions and rates of the companies and keep the documents proving such and register them in duly organized records. In addition, they must negotiate in favor of the Client and represent them before the Company and not to receive any commission for such negotiation.
               
            4. Observe the interests of the Client whether when comparing the conditions, rates and the scope of insurance cover, or in terms of preferring to work with a certain Company rather than others; and not to recommend or advocate any company just because it offers higher commission to the Insurance Broker.
               
            5. Ensure that the Client is aware of and has understood the type of service provided and the nature of relationship between them, as well as ensuring that the policy meets all the Client’s requirements.
               
            6. Notify the Client of all the details of the insurance policy in terms of insurance cover, coinsurance rate (deductible), if any, the surrender amount prior to the scheduled maturity or before the insured risk is realized, or any other conditions, exclusions or restrictions of the insurance policy.
               
            7. Explain the importance of disclosure of the essential and fundamental information when submitting an application for insurance and the consequences of concealing, inaccuracy or invalidity of any data or documents provided by the Client, as well as explaining the Client’s full responsibility for such data and information.
               
            8. Explain the importance of disclosing any future changes that may affect the insurance cover during the term of the insurance policy.
               
            9. Explain the method of payment of insurance premiums highlighting the importance of remitting same in due dates, and the consequences that may be incurred due to failure to observe such due dates.
               
            10. Send insurance policies to Clients without undue delay, enclosing a notice stating the importance of reading the policy carefully.
               
            11. Explain the procedures that must be followed by the Client in case the insured risk occurs; and assist in the negotiations with the Company regarding the claims arising from the occurrence of the said risk; and notify the Client immediately of Company's decision to accept or reject the provision of the insurance cover related to such claims.
               
            12. Not to assign the insurance brokerage tasks to other insurance brokers without obtaining the written approval of the Client and the insurance company thereto.
               
            13. Inform the Client in writing (20) days before the expiry date of the insurance policy so that the Client can expresses their desire in writing regarding the following:
               
              1. Renewal of the insurance policy with the same Insurance Broker or not.
                 
              2. Renewal of the insurance policy with the same company under the same conditions, or with the same company under different conditions, or with another company according to other proposal presented by the Insurance Broker to the Client.
                 
            14. Deal in accordance with the principles of good faith and transparency and professional
              rules and ethics, subject to the confidentiality of the Client's data and information
      • Chapter V Rights of the Insurance Brokers

        • Article 17

          1. The Company may not directly communicate with the Client who authorized the Insurance Broker unless upon the Client’s written desire.
             
          2. The Company may not offer different conditions and rates for the same insurance transaction to another Insurance Broker unless such another Insurance Broker provided different information influencing the Company’s decision regarding the insurance conditions and rates.
      • Chapter VI Branches of the Insurance Brokers

        • Article 18

          1. The Insurance Broker may not open branches thereof in the UAE unless after obtaining
            the IA approval for each individual branch according to the following conditions:
             
            1. A decision is taken by the board of directors or management board of theInsurance Broker to open a branch thereof.
               
            2. The appointment of an officer in charge of the branch who must satisfy the
              conditions stipulated in the rules issued by the Director. The branch officer shall
              submit an acknowledgment that he/she is fully responsible for of the actualmanagement of the branch.
               
            3. The new branch shall operate under the direct supervision of the General Director
              or Chief Executive Officer in the headquarters of the Insurance Broker.
               
            4. Provide the title deed of the branch premises or the lease thereof approved by the
              competent authorities;
               
            5. Submit a statement showing the technical equipment available in the branch, as
              well as a list of the names of the branch employees and their job titles.
               
            6. A minimum period of two years has elapsed since the Insurance Broker waslicensed during which the Insurance Broker must have actually practiced the
              activity and have not been subject to any administrative fines or penalties.
               
            7. Obtain the approval of the competent authority in the relevant Emirate.
               
            8. The volume of premiums achieved by the Insurance Broker during the fiscal year preceding the application for approval must be at least AED 3,000,000.
               
          2. The legal representative of the Insurance Broker shall apply for branch opening using the form designated for this purpose enclosing the supporting information, data and documents, as well as a proof of full payment of the prescribed fees. The IA shall issue its decision approving or rejecting the opening the branch within (20) working days as from the date of submitting the complete application to the IA. The branch registration shall be renewed under an application to be submitted to the IA after ensuring that the Insurance Broker has continued comply with the provisions of these Regulations and full payment of the prescribed annual renewal fees.
             
          3. All the provisions stipulated herein shall apply to the activity of the branch.
             
          4. The Insurance Broker may request the closure of a branch, and the IA shall issue its decision approving the closure of the branch within 20 working days as from the date of submitting the complete application to the IA.
             
          5. Without prejudice to the penalties stipulated herein, the IA may cancel the approval issued for the branch in case the branch lost any of the conditions whereupon the approval decision was issued, or in case the branch has violated any provisions of the Law, regulations, instructions, resolutions and circulars issued in implementation thereof.
      • Chapter VII Merger and Settlement of Disputes

        • Chapter VIII Supervision and Penalties

          • Merger of Insurance Brokers

            • Supervision and Inspection

              • Article 19

                Subject to merger provisions stipulated in the Commercial Companies Law, the following provisions shall apply in case of the merger of Insurance Brokers licensed to operate in the UAE:
                 

                1. The merger of Insurance Brokers shall be by annexation or combination. The merger decision may only be implemented after obtaining the approval of the IA and the competent authority as stipulated in the Commercial Companies Law according to the form resulted from the merger.
                   
                2. If the merger between two or more Insurance Brokers by annexation, an application must be submitted to the IA supported by the following documents:
                   
                  1. Approved resolution from the boards of directors or management boards of both the merging and the merged Insurance Brokers, confirming their desire to merge.
                     
                  2. A copy of the merger contract.
                     
                  3. A statement signed by the internal auditor and external auditor of the Insurance Broker stating the obligations of each Insurance Broker and the right of its Clients.
                     
                  4. The financial statements of each Insurance Broker duly audited to nearest date to submitting the application.
                     
                  5. Evaluation of the net assets of the merged Insurance Broker in accordance with the provisions of evaluation of in-kind shares as provided for in the Commercial Companies Law.
                     
                  6. Undertaking by the merging Insurance Broker to increase its capital once the merger is approved according to the result of the evaluation of the merged Insurance Broker.
                     
                  7. Undertaking by each party to the merger to commit to all the rights of the clients, beneficiaries and companies as well as the outstanding obligations of the merged Insurance Broker in accordance with the final report.
                     
                3. In case the merger between two or more Insurance Brokers by combination, the insurance brokers applying for the merger shall comply with all obligations and procedures set forth in clauses (2) and (7) of this article, provided that each of the merging Insurance Broker shall issue a resolution to dissolve itself. The new Insurance Broker shall be incorporated under the provisions of the Commercial Companies Law. Its capital shall be the net evaluation results of the merging insurance brokers and all obligations and rights as per the final report submitted to the IA immediately before the merger shall be transferred to the new Insurance Broker.
                   
                4. Any party with interest may object to the merger process within three months from the date of its publication in the Commercial Register. Such objection shall be submitted to both competent authority and the IA stating the reasons thereof and including all data and rights owed by the Insurance Broker. The merger may only be approved after the objection has ended, whether amicably or by court judgment.
                   
                5. The merged and merging Insurance Brokers shall be inspected to verify all data, information, obligations and rights related to any of them, and a report thereon shall be prepared.
                   
                6. The complete merger application including all documents and conditions shall be forwarded to the Board to take a decision thereon.
                   
                7. The merged Insurance Broker shall comply with the following:
                   
                  1. Implementation of the merger resolution and the issuance of a resolution to dissolve the Insurance Broker within three months after the date of publication in the Commercial Register, provided that the actual date of Insurance Broker’s dissolution and merger shall be published in two widely distributed daily newspapers, at least one of them in Arabic language.
                     
                  2. The merged Insurance Broker may not dispose of any of its assets after their evaluation by the committee formed for this purpose. In case of disposal of any assets due to an urgent cause, the Insurance Broker shall notify the IA of such disposal immediately as occurred.
                     
                  3. To notify the IA of any changes occurring to their financial status, and to submit a statement showing the rights and obligations of companies, clients and beneficiaries towards them, duly audited as of the date of application until the day preceding the actual dissolution of the Insurance Broker and implementation of the merger resolution. Such statement must be signed by the Insurance Broker’s board of directors or management board and its auditor.
                     
                8. Both the merged and merging Insurance Brokers shall continue practicing their activities
                  normally until the decisions of the IA and the competent authority are issued approving
                  the merger.
                • Article 21

                  1. The IA shall conduct regular and surprise inspection and control visits without prior notice to Insurance Brokers in order to ensure their compliance with the Law, regulations, instructions, resolutions, rules or circulars issued by the IA, and to investigate any violations revealed by such inspections or contained in the complaints received by the IA.
                     
                  2. The IA may request all information and documents – as it deems necessary for the purposes of controlling and investigating on the Insurance Broker or any of their staff, the companies, clients and beneficiaries.
                     
                  3. The Insurance Broker shall place all brokerage records, documents and entries at the disposal of the IA and its employees; and shall cooperate with them and respond to their requests to fully perform their work.
                     
                  4. The Insurance Broker shall provide any data or information requested by the IA within period specified by the IA.
            • Penalties

              • Dispute Resolution

                • Article 22

                  1. In case of a breach by the Insurance Broker of the Law, regulations, instructions, resolutions or circulars issued thereunder, the IA may sanction any of the following penalties:
                     
                    1. Serve a warning to the Insurance Broker and compel them to remove the breach
                      causes and take the necessary actions to prevent recurrence it in the future.
                       
                    2. Suspend the Insurance Broker from practicing the activity for maximum period of
                      one year.
                       
                  2. The IA may cancel the Insurance Broker’s license in any of the following cases:
                     
                    1. Losing any of the license conditions stipulated herein.
                       
                    2. Gross breach of any of the duties and obligations.
                       
                    3. Failure to renew the license, or to pay the annual renewal fees or prescribed delay
                      fines.
                       
                    4. Issuance of a final court judgment declaring the Insurance Broker bankrupt.
                       
                    5. The dissolution and liquidation of the Insurance Broker.
                       
                    6. If the Insurance Broker fails practice the licensed activity within 6 months from
                      the date of granting the license.
                       
                    7. If the Insurance Broker fails practice the activity after a suspension period.
                       
                    8. If it is found out that the license was granted on the basis of invalid information or data, or based on an undertaking that has not been implemented as determined by the IA.
                       
                  3. The cancelation of the license shall entail the following:
                     
                    1. Publishing the decision to cancel the Insurance Broker’s license and write off its
                      name from the Insurance Brokers Register as soon as the decision is published in
                      two widely distributed daily newspapers in the UAE, one of them in Arabic
                      language, at the Insurance Broker’s own expense. The IA may pay such expenses
                      from the Insurance Broker’s Letter of Guarantee.
                       
                    2. Recover the Letter of Guarantee and terminate the professional indemnity
                      insurance policy after 3 months from the publication date once the IA approved
                      the same; and after the settlement of all transactions of the Insurance Broker and
                      ensuring there are no obligations towards the IA, clients, companies or any
                      beneficiaries arising from practicing the Insurance Brokerage business.
                       
                    3. No application for license may be submitted before the lapse of (3) years from the
                      date of issuing the license cancelation decision.
                  • Article 20

                    The companies, clients, beneficiaries and Insurance Brokers may submit complaints to the IA to take the appropriate decisions thereon pursuant to the applicable procedures of the IA.

                  • Article 23

                    In case the Insurance Broker's employees violate the Law, regulations, instructions, resolutions or circulars issued thereunder, the IA may impose the following penalties:

                    1. Warning;
                       
                    2. Suspension from practicing the activity for a maximum period of two months;
                       
                    3. Cancellation of the accreditation in case of excessive breach of the Law, regulations, instructions, resolutions or circulars issued by the IA.
                  • Article 24

                    Imposing any of the above stipulated penalties shall not prejudice the civil or criminal liability of the Insurance Broker or any of its employees for the committed violations.

              • Grievance

                • Article 25

                  A decision rejecting an application for license, registration, cancelation or write-off may be appealed within (20) working days from being notified of the relevant decision. The appeal shall be submitted to the IA Board of Directors to decide thereon within (20) working days from the date of submission of the complete appeal. The Board’s decision on the grievance shall be final.

              • Final Provisions

                • Article 26

                  1. Whoever practices the insurance brokerage business must rectify their status in accordance with these Regulations within a maximum period of one year from the date it takes effect.
                     
                  2. The IA shall collect the prescribed fees for any procedures or services provided by the IA according to the provisions of the Law, regulations or resolutions issued thereunder.
                     
                  3. Without prejudice to the procedures stipulated in the Commercial Companies Law, in case of a voluntary or mandatory liquidation of an Insurance Broker, such liquidation shall be under the supervision of the IA.
                     
                  4. It is prohibited to deal with any person practicing insurance brokerage business without a license from the IA pursuant to the provisions of these Regulations.
                • Article 27

                  The Director General shall issue the resolutions, circulars and instructions required for the implementation of these Regulations.

                • Article 28

                  The Ministry of Economy Resolution No. 543 of 2006 concerning the Regulation of the Profession of Insurance Brokers shall be revoked.

                • Article 29

                  These Regulations shall be published in the Official Gazette, and shall come into effect on the following day to its publication.
                   

    • Decision No (58) of 2013 Concerning the Implementation of Insurance Authority Board of Directors Resolution No. 15 of 2013 Concerning Insurance Brokerage Regulations

      IA-BOD-RES 58/2013 Effective from 8/12/2013
      This regulation will remain in force until 15 February 2025, after which it will be replaced by the updated Insurance Brokers’ Regulation (C 1/2024)

      The Director General of the Insurance Authority,

      Having perused:

      ‐ The Federal Law No.1 of 2002 concerning the Criminalization of Money Laundering;

      ‐ The Federal Law No.6 of 2007 concerning the Establishment of the Insurance Authority and the Regulation of Insurance Business;

      ‐ The Insurance Authority Board of Directors Resolution No. 2 of 2009 issuing the Implementing Regulations of the Federal Law No. 6 of 2007 concerning the Establishment of the Insurance Authority and the regulation of Insurance Business; and

      ‐ The Insurance Authority Board of Directors Resolution No.15 of 2013 concerning Insurance Brokerage Regulations,

      Has decided the following:

      • Article 1

        The approved special forms for practicing of the Insurance Brokerage activity in the UAE shall be as follow:

        1. Insurance Broker License Application Form.

        2. Insurance Broker License Renewal Application Form.

        3. Insurance Broker Branch Registration Renewal Application Form.

        4. Registration Data Amendment Annotation Application Form.

        5. Insurance Broker Employee Accreditation Application Form.

        6. Application Form to Add a New Insurance Type / Class to the Broker License.

        7. Insurance Broker Branch Opening Application Form.

        8. Bank Letter of Guarantee Form.

        9. Written Undertaking Application Form.

      • Article 2

        For the Insurance Authority to accredit the incumbent of one of the following positions with the insurance broker, it is required that he must meet the conditions set forth against each position as follows:

        I. The following qualifications and experience must be met:

        1. Director General or CEO:
           
          1. Hold a university degree or equivalent, or the ACII certificate accredited by the Chartered Insurance Institute of London, or a certificate accredited by a similar professional institute.
             
          2. Have successfully passed (3) training courses in insurance or insurance brokerage.
             
          3. Have a minimum practical experience of 10 years in insurance/ insurance brokerage, and no less than 5 years if he holds a higher academic qualification. The experience requirement for a UAE national shall be a minimum of 5 years’ experience and 2 years’ experience if he holds a higher academic qualification.
             
        2. Operations Manager
           
          1. Hold a university degree or equivalent in financial sciences, accounting, management sciences, banking or law, as a minimum.
             
          2. Have a minimum practical experience of 6 years in insurance/ insurance brokerage, and no less than 3 years if he holds a higher academic qualification. The experience requirement for a UAE national shall be a minimum of 2 years’ experience, and 2 one year experience if he holds a higher academic qualification.
             
        3. Internal Controller
           
          1. Hold a university degree or equivalent in a financial, accounting or law field as a minimum, or an accredited professional financial certificate approved by the Insurance Authority.
             
          2. Have practical experience in internal or external audit, and had previously taken part in the audit of insurance companies or brokerage business in no less than 3 years, or 2 years if he holds a higher educational qualification or if he is a UAE national.
             
        4. Professional Employees

          The broker must have at least one specialized professional for each licensed insurance type / class. Each such professional must meet the following requirements:
           
          1. Hold an accredited university degree.
             
          2. Have a minimum practical experience of 5 years in the field of the licensed type or class of insurance/insurance brokerage. The experience requirement for a UAE national shall be a minimum of 3 years’ experience in the said fields.

             
        5. Branch Officer
           
          1. Hold a university degree or equivalent, or the ACII certificate accredited by the Chartered Insurance Institute of London, or a certificate accredited by a similar professional institute.
             
          2. Have a minimum practical experience of 7 years in insurance/ insurance brokerage, and no less than 3 years if he holds a higher academic qualification. The experience requirement for a UAE national shall be a minimum of 4 years’ experience or 2 years’ experience if he holds a higher academic qualification.
        1. II. Academic degrees must be accredited as equivalents by UAE Ministry of Higher Education and Scientific Research.
           
        2. III. Candidates must pass the examinations prescribed by the Insurance Authority.
           
        3. IV. No candidate should have been dismissed from any entity for disciplinary reasons.
           
        4. V. Each candidate must be practice the profession on full time basis.
           
        5. VI. The accreditation application must be submitted on the form prepared for this purpose and must enclose all documents, data and information supporting the application. Any other documents, data or requirements requested by the Insurance Authority must be provided.
           
        6. VII. Restrictions on practicing the approved functions:
           
          1. It is impermissible to start practicing any functions described above prior to the accreditation by the Insurance Authority.
             
          2. It is impermissible to combine two approved jobs at the same time.
             
          3. The internal controller may perform the duties of internal auditor for the company in addition to his prescribed duties after obtaining the Insurance Authority’s approval.
      • Article 3

        Any letter of guarantee should be issued by one of the banks operating in the UAE in favor of the Insurance Authority using the approved form, and must be unconditional or restricted, payable at any time upon request by the Insurance Authority, irrevocable unless under a written consent by the Insurance Authority and automatically renewable annually.

      • Article 4

        The insurance broker shall maintain the required solvency to practice his/its activity, and shall ensure the continuous performance of his/its obligations in accordance with the following rules:

        1. The broker shall maintain the solvency required to pay all his/its liabilities once due without resulting in his/its default or in compromising his/its financial position.
           
        2. In all instances, the value of the broker’s existing assets must be in excess of his/its liabilities in order to enable him/it to continue the practice of his/its activity and ensure the continuous performance of his/its liabilities.
           
        3. The excess in the value of the broker’s existing assets over his/its liabilities shall represent his/its available capital.
           
        4. At all times, the broker’s available capital may not be less than his minimum capital prescribed in the Regulations.
           
        5. The broker shall report to the Insurance Authority immediately upon the occurrence of any failure to maintain the minimum capital and will be given a grace period of 15 days to submit a detailed plan to fulfill the minimum required capital. In case of failure to fulfill the minimum required capital within 30 days after the plan submission date to the Insurance Authority, the Insurance Authority may temporarily suspend the broker’s business.
           
        6. The broker shall ensure that his/its annual and interim financial reports include a clear description for all necessary data and information related to his/its solvency, as well as his/its strategy, systems and goals in managing risks associated with his/its financial position (including a detailed breakdown of receivable and payable aging and balances, as well as revenues from premiums and commission for each company).
           
        7. The broker shall provide the Insurance Authority with the risk general management framework statement, which shall include the internal procedures to assess his/its solvency as commensurate to the risks that his/its financial position may be exposed to and his/its strategy in capital allocation to counter such risks.
           
        8. The broker must strictly adhere to the payment of amounts received form the customers to the concerned insurance companies in due dates.
           
        9. The broker shall maintain liquid assets or assets convertible to liquid money within a period of no more than two weeks to cover at least 100% of all short term liabilities.
           
        10. The board of directors or the management board of the broker shall approve a financial and accounting policy for receivable collection. Such policy shall include all required procedures to collect receivables of all forms including the related party receivables.
           
        11. The broker must record all of his/its assets in the company's name and shall immediately inform the Insurance Authority in the case of any mortgage or seizure imposed on any such assets.
           
        12. The broker shall incorporate in his/its internal control procedures an effective mechanism and implementable administrative and financial procedures to manage and control risks that may be encountered in the manner commensurate with the nature and size of his/its activities.
      • Article 5

        The broker must submit a training and Emiratization plan along with the license application.

      • Article 6

        The broker may request the closing of a branch. The Insurance Authority shall issue its decision to approve such closure within 20 work days from the date of submitting the complete application to the Insurance Authority provided that the broker adheres to the following:

        1. Submit an application for data amendment annotation in the Register.
           
        2. Any party with interest shall have the right to object to the branch closure within one month from the date of publishing the announcement in two local widely-distributed newspaper issued in the UAE, one of them in Arabic. Such objection shall be submitted to the competent authority and the Insurance Authority with the reasons thereof and including all data and rights due from the broker. The branch closure application may not be approved except after the reasons for objection to the closure are elapsed by consent or by court order.
           
        3. The broker shall continue the normal practice of his/its activity until the issuance of the approval decision to close the branch by the Insurance Authority and the competent authority.
           
        4. For a foreign broker branch or a broker established in the UAE free zones, a proof that the parent company has actually approved the branch closure, provided that such proof must be translated in Arabic and certified.
           
        5. The bank guarantee shall be released after 3 months from the date of the Insurance Authority’s approval of the closure, cancelation of the associated license and ensuring that there are no liabilities are owed by the branch to the Insurance Authority, companies and customers arising from its insurance brokerage practice.
           
        6. Notify the relevant competent authorities of the branch closing decision.
      • Article 7

        The forms attached to this Decision shall be an integral part thereof and shall be read therewith.

      • Article 8

        All concerned parties must implement this decision, and shall become effective on the date of its issuance.

    • The Work Guide of the Internal Controller at Insurance Brokerage Companies

      This guide will remain in force until 15 February 2025, after which it will be replaced by the updated Insurance Brokers’ Regulation (C 1/2024)
      • Firstly: The Introduction

        The procedures and processes of internal control have evolved from traditional methods to modern methods that are emanating from international professional associations that have established international standards for compliance processes in terms of planning and implementing internal control activities. The internal auditor's efforts are focused on the most critical and important areas of the company. Insurance brokerage is one of the most required companies to implement internal control and auditing procedures for the purpose of providing effective services and results based on a strong qualitative service delivery system, Also, seeking effective ways to ensure sound decision, minimize manipulation, embezzlement, fraud and all the risks encountered by insurance brokers.

        The job of the Internal Controller in the insurance companies and insurance brokers is one of the new jobs being created. The job description of the Internal Controller can be summarized as following:

        •To carry out internal control functions as an organized and systematic activity that is objective and aims at adding a participatory value in achieving the objectives of the institution.
        •The Internal Controller must be fully independent in the institutional organization in order to be able to carry out the tasks entrusted to him.
        •The Internal Controller provides assurance regarding the assessment and effectiveness of risk management, internal control systems of the company, governance and compliance with policies and regulations.

        Thus, the internal auditor's task can be summed up by making sure that the insurance broker's bushiness and procedures taken in certain fields of insurance activity are consistent with the provisions of the laws issued in the State in general and with the laws, regulations, instructions and decisions issued by the Insurance Authority in particular. He is also responsible for providing information, data and documents required by the Insurance Regulatory Authority in respect of those particular fields.

        The Authority affirms that it is the responsibility of the senior management to take all necessary measures to ensure the continuity of the internal auditor's work, especially in terms of providing information and data and facilitating the work of the internal auditor, and emphasizes the need for the Internal Controller to prove in his work a high degree of professionalism and objectivity. So that the Internal Controller would be disentangled from any interests that would affect his judgments and make it biased.

      • Secondly: The Basic Principles of Practicing the Profession of an Internal Auditor:

        Continuity: the Internal control activities should be consistent and sustainable in terms of carrying out their tasks and duties. For this purpose, senior management is responsible for taking all necessary measures to ensure the continuity of the internal auditor's work, especially in providing information and data and facilitating the work of the internal auditor.
        •Independence: The independence of the Internal Controller requires that his organizational subordination should be to the highest level of executive management and has direct communication with this level. It is also necessary for the independence of the internal auditor, not to be the decision maker in setting policies and procedures (it is possible to contribute to the company's team) or perform another executive work in the company.
        •Integrity: The Internal Controller must be free from the intellectual subordination of the Management, make high professional care in carrying out all the internal control work, and the Internal Controller should act in the interest of the institution, not in contradiction with the ethical values of the profession.
        •Objectivity: The Internal Controller must demonstrate in his work a high degree of professionalism and objectivity so that the Internal Controller is disentangled from any interests that would affect his judgments and make it biased.

      • Thirdly: Audit and Compliance Procedures:

        •The internal control program is the work plan of the Internal Controller to review the registers and books and the data contained therein and review it to implement the written policies and procedures and to be in conformity with the laws, regulations and instructions issued by the regulatory authorities. This plan also contains the objectives to be achieved and the steps to be taken in order to achieve these objectives, the specified time to finish each step, and the person responsible for the implementation. The program achieves several objectives as a control and planning tool by which the auditor can track the monitoring process and the number of hours spent in each process. It is important to take into consideration in designing the internal audit program the following:

        • The efficiency of the internal control system in the insurance brokerage company and based on the degree of efficiency, the scope of the internal audit, control and control process is determined.
        • Objectives to be achieved because internal audit is a means, not a goal, hence, the program must enable the achievement of those objectives.
        • Use the means of review and control that enable the auditor to obtain strong evidence in their validity. "To follow the audit methods that are appropriate to the
          circumstances of each case, each facility has its own circumstances against which
          the Internal Controller prepares the appropriate observer program.
        • Types of audit programs:
        • "It is not possible to develop a unified program for auditing and inspection of all types to be applied to different or even similar establishments because of the different circumstances of each brokerage company that distinguish them from others." In general, there are two types of audit programs:

        1. Periodic and fixed or pre-determined audit programs.
        2. Emergency inspection programs arising from the occurrence of any kind of problems that affect the performance of the company and are in clear violation of regulations and instructions or policies and procedures.

      • Fourthly: The Elements of Work of the Internal Control and Compliance

        •The internal control job provides services to both the company's management and its board of directors. They are responsible for providing the Internal Controller with all the information that helps him to evaluate and adapt the internal control system and its effectiveness. It is the company's management responsibly to enable the Internal Controller to submit periodic reports to the Insurance Authority. The Inspection and control process is divided into several key elements according to their sequence and importance based on the following:
        A. Obtaining a general knowledge about the institution and the auditor needs technical and legal indicators about the company he intends to audit.
        B. Inspection and evaluation of the internal control system and internal tests of the internal control on operations (policy compliance tests) .The Internal Controller uses the practical and statistical methods of determining the sample size of the situation due to its huge quantity. In this context, the Internal Controller must act in accordance with the written procedures used in the institution in order to evaluate if the internal control system is comprehensive and reliable or not. The most important step taken by the auditor is to study the internal control system .In the light of this study, subsequent steps are determined and the size of the tests is determined.
        C. Examine processes and procedures and submit reports on the extent of their compliance with the regulations, instructions and circulars issued by the Insurance Authority and work on sending a copy of the Internal Control reports through the company's management, provided that they are signed by the Authority's management and the internal auditor.
        D. Ensuring that the internal control system of the company is effective at its minimum. In this context, it ensures that no mistakes or acts of fraud are committed, and then moves on to processes that are difficult for the internal control system to detect, review its analysis by comparing and studying their evolution from one cycle to the next.
        E. Preparation of the audit report. In order for the Internal Controller to achieve success in his duties, he must be at the best level of professional and personal relations with all employees of the insurance brokerage company in which he works so as to create the best atmosphere for effective cooperation between him and the departments and sections of the company. Without such cooperation, the task of the Internal Controller would be difficult.

      • Fifthly: The Duties and Responsibilities of the Internal Controller in Insurance Brokerage Companies

        The following terms include some of the main and core functions of the Internal Controller in the insurance brokerage companies:

        1. Review the relevant laws and has the full knowledge of all laws, regulations and instructions issued by the Insurance Authority and the work of the insurance broker (and the subsequent amendments, or regulations and instructions issued thereafter), attached herewith the list of the most important laws, regulations and instructions to be reviewed.
        2. Continue to update the senior management of the board of directors, board of managers and key employees of all the applicable rules and policies of compliance to which the company must comply.
        3. To inform all employees of the company through the senior management of all the policies and compliance regulations and its updates
        4. Develop comprehensive internal control policies and procedures in insurance brokers that include an effective internal audit of the regulations, instructions and practices applied in the company’s activities, and should be approved by the board of directors of the bank.
        5. Updating the policies and procedures periodically to ensure that the company complies with the latest regulations and instructions related to all the company's operations and activities.
        6. Conduct annual and quarterly review of all the instructions included in the policies and procedures manuals applied in the company to ensure their conformity, consistency and compliance with their implementation in accordance with the requirements of the law and the Regulation and the amendments thereof and the regulations, instructions and circulars issued by the Insurance Authority.
        7. Conduct an emergency and sudden review after coordination with the company's management to ensure the validity of the procedures and policies applied as mentioned in the previous paragraph.
        8. Prepare a comprehensive plan for examination and ensure that all written policies and procedures approved by the Bank are compliant with applicable compliance rules.
        9. Upload the annual and quarterly reports on internal controls on the website of the Insurance Authority. The Internal Controller may submit monthly reports if necessary, or if requested by the Authority's management.
        10. Ensure that the management of the company and its employees apply the correction plan approved by the company's board of directors in accordance with the approved internal control reports.

      • Sixthly: The Specialized Functions of the Internal Auditor

        The internal control of the technical departments’ performance in the insurance brokerage companies is one of the most important aspects that the Internal Controller must follow up and know all their aspects. These special tasks include reviewing the performance of all departments and the technical departments, especially those related to technical works in insurance brokerage. The following represent the key functions of the internal auditor.

        Firstly: The Implementation of The Insurance Authority Board of Directors’ Resolution No.15 of 2013 concerning Insurance Brokerage Regulations, Decision No (58) of 2013 Concerning the Implementation of Insurance Authority Board of Directors’ Resolution No. 15 of 2013 and Insurance Authority Board of Directors Resolution No. 20 of 2014 On the Amendment of Some Provisions of the Insurance Authority Board of Directors Resolution No. 15 of 2013

        The internal controller of the insurance brokerage company must complete a periodic review on the company's implementation of the Insurance Authority Board of Directors’ decision No. (15) of 2013 and its amendments in subsequent decisions or executive decisions issued by the Authority's management, specifically the obligations of the brokerage company stated in Section No. (4) of the said decision ,which stipulate the obligations of the brokerage company towards the Insurance Authority, Insurance companies and customers . The report must clarify the defect points and the corrective actions agreed upon with the management of the insurance brokerage company and what is the time frame of the proposed plan.

        Secondly: The Implementation of the regulations of Anti- money laundering and combating terrorist financing in insurance activities:

        • The Insurance Authority has issued the regulations of Anti- money laundering and combating terrorist financing in insurance activities by the Board of Directors resolution No. (13) of 2015. The regulations included clear definitions of insurance business, money laundering and terrorist financing, in addition to the definition of suspicious transactions and extraordinary transactions. The following is a summary of the main tasks assigned to the Internal Controller in this respect, pointing out the need to fully comply with all the provisions of the mentioned regulations.

        • The Internal Controller should confirm the validity of the procedures used to open a customer account in the company, including full knowledge of customer information according to a clear form approved by the company management.

        The most important information to be verified by the Internal Controller is:

        1. If the client is a close partner of foreign persons who are politically exposed, this includes
        a. The politically exposed foreigner.
        B. The direct family members (spouses, children, their spouses and parents.)
        C. The partners known to be close to the individual are:
        • Individuals who have joint ownership of a legal entity, legal arrangement or any close working relationship with a politically exposed foreigner.
        • Individuals who have sole ownership of a legal entity or legal arrangement established for the benefit of the politically exposed foreigner.

        2. The Internal Controller shall ensure that the company obtains all necessary information and documents for the customers which include:

        A. The Natural persons: full name, nationality, place and date of birth, current address, place of permanent residence, place of work, passport and / or identity card for individual clients, and keeping a certified copy. For incompetent persons, documents relating to them and their legal representative should be obtained, as appropriate.
        B. The Corporate persons: full information and documents should be obtained and in particular (the Commercial Registration and the Articles of Association)mentioning the date of renewal and keeping a copy thereof. Also, the name and address of the owner and the names and addresses of the partners and their nationalities shall be obtained.
        C. Public Shareholding Companies: The names and addresses of the Chairman and members of the Board of Directors and shareholders, each of which exceeds 5% or more, shall be obtained.
        3. In the event that the transaction is for the benefit of another person or entity, the Internal Controller shall ensure that the company obtains a copy of identity of that person or that entity and keep a certified copy of the authorization letter, acquire and register adequate information about them.
        4. When dealing with cooperatives, social or professional associations, a copy of the declaration decision of this association issued and signed by the Minister of Social Affairs must be obtained.
        5. The Internal Controller shall confirm the prohibition of opening an account under a pseudonym. The name of the account holder must always be authenticated as in the identity, passport or commercial license, and the official responsible for opening the account must carry out a physical inspection of the passport, trade license or any identity card, The documents shall be marked as a true copy and signed.
        6. The Internal Controller of the company shall be knowledgeable with the persons listed on the United Nations list of terrorism, compare the names of all the company's clients with that list, notify the unit of any transaction related to that list, and periodically update the list of persons through the United Nations website WWW.UN.ORG .

        7. The Internal Controller shall work to determine the necessary bases for classifying the clients of the insurance company according to the degree of risk of their association with money laundering and terrorist financing. He shall adopt a system of classification of customers based on logical basis, with constant updating. Pursuant to the administrative decision No. (79) of 2015 concerning the guidelines of Anti-Money laundering and combating terrorist financing in the insurance activities .This system shall include at least the following risks:
        a. The risks related to Services and Products.
        B. The risks of Customers.
        C. The risks related to specific geographical areas.

        • With regard to terrorist financing operations, we refer to the Federal Law No. (7) of 2014 (issued on 20/08/2014, concerning combating terrorist crimes, particularly the definition of terrorist crime, terrorist purpose and terrorist result in Article (1) of this Law, and to article No (29) - (30) of the law relating to crimes of financing terrorism, where the Internal Controller must review the provisions of this law and work to apply them strictly.
        • If there are serious reasons to suspect the existence of a money laundering or terrorist financing process, the Internal Controller(behind the scenes) checks the identity of the client or the concerned person without drawing the client or the person attention of these suspicions regardless of how much the subject amount of the process.
        • In case of any of the above mentioned cases,
        A. The Internal Controller(after taking the opinion of the company management)shall freeze the transaction.
        B. The Internal Controller and the Company shall immediately notify the Financial Intelligence Unit for Anti- money laundering and suspicious cases unit (AMLSCU) of the Central Bank of the State through the electronic system or any appropriate method, and notify the Authority of what has been reported to the Unit.
        C. The Internal Controller in his department shall keep a copy of the information sent to the Central Bank and the Insurance Authority.
        D. The freezing of funds in suspicious cases is by order of the Central Bank.
        E. The Public Prosecution may, after having been notified by the Central Bank of the reservation of the funds or the means used in the suspicious operations, and in the end the operation shall be subject to the decision of the competent court.
        F. The Internal Controller does not assume that the possibility of money laundering or terrorist financing in this type or branch of insurance may be excluded. However, the most insurance branches of insurance that is liable to be used for the sepurposes:
        A. Life Insurance and Family Takaful (Mixed Insurance).
        B. Marine insurance of goods.
        C. Insurance of jewelry stores and precious stones.

        At the end of this part of the Guide, we emphasize the need for the Internal Controller to adhere to the following:
        a. Full Implementation of the Board of Directors Resolution No. (13) of 2015 Concerning Anti-Money Laundering and Combating Terrorist Financing in Insurance Activities and Guidelines No. (79) of 2015, concerning Anti- Money Laundering and Combating Terrorist Financing in Insurance Activities
        B. No to initiate procedures unless there are serious reasons for suspicion.
        C. The proceedings take place in a strictly confidential manner.

        Thirdly: Functions related to the disclosures and financial and non-financial statements of the insurance brokerage company.

        The internal auditor, in cooperation with the company's management, shall notify and provide the Authority with the following:

        A. A quarterly report signed by the Chairman of the Board of Directors or the General Manager or the Executive of insurance brokerage activities and related accounts, including a report on the financial solvency in accordance with the specified requirements within a period not exceeding 30 days from the end of the quarterly period.
        B. An annual report signed by the Board of Directors or Board of Managers, containing all insurance brokerage activities conducted during the year and the final audited annual financial statements accompanied by the report of the external auditor, within a period not exceeding 60 working days from the end of the fiscal year.
        C. An annual statement of the general framework of risk management which includes its internal procedures to assess its financial solvency and in proportion to the risks that may affect its financial position and strategy in allocating capital to encounter these risks.
        D. A copy of any brokerage agreements concluded with the companies within seven working days of signing them on the electronic system of the Insurance Authority.
        E. Notification on the appointment of accredited personnel and any amendment or change in their transfer or end of service and the reasons for such change with in two working days. He shall also notify the Authority of the appointment of an alternative until the vacancy is permanently filled within a period of 60 working days from the date of vacancy.
        F. Notification on any change to any of the data or documents that have been registered based on it, within five days from the date of the change.
        G. All data and statistics that are requested and in accordance with the periods specified by the Authority.
        H. The insurance broker shall ensure that his annual and interim financial statements contain all necessary data and information relating to his financial solvency, regulations and objectives to manage the risks of his financial position, including a detailed breakdown of the durability and balances of payables as well as revenues from premiums and commissions from each company.

         

        Internal Control Quarterly report

        Company

         

        Licensed Activities

         

        Report Date

         

        Period of invesigation

         

        Internal controller

         

        Contact Details

         

        Firstly: verifying the extent of compliance with the decisions, laws and regulations

        The Board of Directors Decision No. (15) of 2013 concerning the insurance brokerage regulations

         

         

        degree of

         

         

         

         

         

         

        No.

        Decision provisions

        committed

        Non committed

        nuder process

        NA

        Reasons of Non-compliance

        Internal controller recommendations

        Higher Management recommendations

        corrective procedures

        Period for correction

        Attachment

         

        Article

         

        The proposed documents and data to be reviewed to ensure the compliance with the legal provisions . The Compliance officers can develop procedures, evidences and other supporting documents that are not mentioned in the description to ensure compliance with the laws, regulations and legal provisions.

         

         

         

         

         

         

         

         

         

         

         

        1

        Article (2), clause (2) "No one may practice the Insurance Brokerage activity in the UAE without obtaining a license from the IA. Such license shall be renewed annually in accordance with the "provisions of these Regulations

         

        verify that the insurance company's license is valid and effective

         

         

         

         

         

         

         

         

         

         

         

        2

        Article (3), clause (1) "An Insurance Broker may combine brokerage business in personal insurances and funds accumulation operations on the one hand, and brokerage of property and liability insurance on the other hand, provided that both classes of business are completely separated in terms of books and records or personnel working in each class "

         

        Ensure the separation between the two types of insurance by establishing clear policies to separate the concerned departments and not to overlap between the work and the existence of a clear separation mechanism in the records of the company.

         

         

         

         

         

         

         

         

         

         

         

        3

        Article (3), clause (3) "An Insurance Broker may not combine their role as an insurance broker on the one hand and the role of an insurance agent, insurance consultant, surveyor and loss adjuster, or actuary on the other hand"

         

        Periodic review of the services provided by the company and review of the statute, internal regulations and internal policies and procedures for job description of each department to verify the provision of insurance brokerage services and not to provide any services for the professions mentioned in Article

         

         

         

         

         

         

         

         

         

         

         

        4

        Article (3), clause (4) "An Insurance Broker may combine the Insurance Brokerage business in accordance with the provisions of these Regulations and the re-insurance brokerage business, subject to not combining both roles (insurance broker and re-insurance broker) for the same transaction and for the same party he works for "

         

        The Broker may add reinsurance brokerage business after approval by the Authority and interview with the specialized reinsurer. The Compliance Officer shall ensure that the Company's statute, internal Bylaws and work procedures allow and regulate the practice of insurance brokerage

         

         

         

         

         

         

         

         

         

         

         

        5

        Article (3), clause (5) "A company incorporated in the UAE in accordance with the Commercial Companies Law, having the objective of practicing the Insurance Brokerage activity. "

         

        Checking the company's investments in the financial records and contracts with any other broker, if any

         

         

         

         

         

         

         

         

         

         

         

        6

        Article (4), clause (1) , sub-clause (a) " An Insurance Broker may not be partner or agent of any other Insurance Broker "

         

        Ensuring the activities stipulated in the commercial license and the statutes and submitting a request for approval in the event of modification of the form or purposes of the company.

         

         

         

         

         

         

         

         

         

         

         

        7

        Article (4),clause (1) , sub-clause (b) " A branch of a company incorporated in a financial free zone in the UAE, or a branch of a foreign company, provided that such company is licensed to practice this activity in the said financial free zone or in the country of origin in the same insurance type and class; and should be subject to the control of a counterpart supervisory authority, with a minimum five years of practice in Insurance Brokerage, and subject to any controls or conditions set by the IA. "

         

        Ensure the activities in the license granted to the company by the regulatory authority and the statute and submit a request for approval in the event of modification of the form or purposes of the company. Verify the validity and effectiveness of the license in the home country and inform the Authority of any significant changes occur in the parent company.

         

         

         

         

         

         

         

         

         

         

         

        8

        Article (4), clause (2) " The paid capital may not be less than (AED 3,000,000) three million Dirhams for a company incorporated in the UAE and (AED 10,000,000) ten million Dirhams for the branch of a company incorporated in a financial free zone or the branch of a foreign company. "

         

        Check the company's Articles of Association, confirm the Memorandum of Association, ensure the latest audited financial statements of the parent company, the company's registration certificate in the original supervisory authority.

         

         

         

         

         

         

         

         

         

         

         

        9

        Article (4), clause (3) " A Letter of Guarantee produced by a bank in favor of the IA must be submitted in accordance with the terms and conditions referred to herein. "

         

        You must return to the form published on the website of the Insurance Authority and always make sure that there is a bank guarantee, you must work to inform the Authority directly in the event of any amendment to the bank guarantee data.

         

         

         

         

         

         

         

         

         

         

         

         

        The Letter of Guarantee shall be:

        1. Issued by a bank operating in the UAE, in favor of the Chairman of the IA Board of Directors in his capacity according to the form designated by the IA.

        2. Unconditional, unrestricted, payable on demand – by the IA – at any time and may only be canceled under a written consent of the IA.

        3. Issued for the purpose of guaranteeing the settlement of the Insurance Broker's transactions and meeting their obligations arising from practicing Insurance Brokerage towards companies, clients or beneficiaries, or in implementation of the IA's decisions.

        4. Its value may not be less than (AED3,000,000) three million Dirhams for companies incorporated in the UAE and (AED1,000,000) one million Dirhams for any branch there of. For the branch of a foreign company or companies incorporated in any financial free zone, its value may not be less than(AED 5,000,000) five million Dirhams for the branch and (AED 3,000,000) three million Dirhams for any addition branch thereof in the UAE.

         

        You must return to the form published on the website of the Insurance Authority and always make sure that there is a bank guarantee, you must work to inform the Authority directly in the event of any amendment to the bank guarantee data.

         

         

         

         

         

         

         

         

         

         

         

        10

        A professional indemnity insurance policy in favor of the IA must be submitted in accordance with the terms and conditions referred to herein.

         

        You must return to the form published on the website of the Insurance Authority and always make sure that there is a bank guarantee, you must work to inform the Authority directly in the event of any amendment to the bank guarantee data.

         

         

         

         

         

         

         

         

         

         

         

        11

        The Professional Indemnity Policy shall be:

        1. Issued by a company licensed by and registered with the IA, after the IA's approval of the conditions of such policy.

        2. The insured shall be the Insurance Broker and the beneficiary shall be the Chairman of the IA Board of Directors in his capacity.

        3. Issued for the purpose of guaranteeing any liability arising from damages resulting from practicing Insurance Brokerage, unintentional error, omission and unintentional negligence.

        4. Valid throughout the license term and applicable to the annual renewal of the license. The Insurance Brokerage activity may not be practiced unless such policy is available and valid.

        5. The insured sum under the policy may not be less than (AED 2,000,000) two million Dirhams for companies incorporated in the UAE, provided that the deductible amount may not exceed (AED 30,000) thirty thousand Dirhams for each accident. As for the branch of a foreign company or companies incorporated in any financial free zone, the insured sum under the policy may not be less than (AED 3,000,000) three million Dirhams, provided that the deductible amount may not exceed (AED 50,000) fifty thous and Dirhams for each accident.

         

        Ensure that the conditions set out in the Professional Indemnity Insurance Policy are met in the Authority

         

         

         

         

         

         

         

         

         

         

         

        11

        Individuals to be appointed in the technical and administrative staff must satisfy the following conditions:

        a) Be a natural person enjoying full capacity.

        b) Be of good conduct and behavior, and has never been sentenced for a freedom restricting punishment in a moral turpitude crime without being rehabilitated.

        c) Has not stopped the payment of his commercial debts even if not associated with bankruptcy declaration, or has been judged bankrupt without being rehabilitated.

         

        To ensure the availability of technical staff and inform the Authority in the event of any amendment to the technical staff of the Authority

         

         

         

         

         

         

         

         

         

         

         

        12

        An Insurance Broker must continuously have the technical staff required to practice the licensed activity and must at least appoint employees to assuming the following jobs: a) General Manager or Chief Executive Officer. b) Operations Manager. c) Internal Auditor. d) At least one specialized employee for each licensed insurance type or class.

         

        Specialized employees (persons and fund accumulation Insurance Officer -Property and Liability Insurance Officer - Reinsurance Broker) The company can appoint more than one specialist provided that they inform the authority in the event of an amendment and may appoint specialized staff in a particular type of insurance such as health insurance.

         

         

         

         

         

         

         

         

         

         

         

        13

        No one may combine two jobs of the jobs approved by the IA at the same time.

         

        Ensure that no one combine between two approved jobs and that the internal controller has no executive tasks.

         

         

         

         

         

         

         

         

         

         

         

        14

        An Insurance Broker shall notify the IA of the appointment of any accredited personnel, and of any modification or alteration that may arise regarding their transfer or termination, stating the reasons thereof. An Insurance Broker shall also notify the IA once any of the accredited posts becomes vacant and an alternative is appointed until such vacant post is permanently filled within a maximum period of 60 business days from the date of vacancy.

         

        The necessity to inform the Authority about the transfer and termination of the services of any of the approved staff and to provide new documentation on the new employees within the period specified in the article

         

         

         

         

         

         

         

         

         

         

         

        15

        A suitable headquarters, software and technical systems required to practice the activity must be provided.

         

        Not to change the company's headquarters without informing the insurance company. The conditions of the place: Provide a suitable place to carry out the work, including a separate place for the Director General and the internal controller. The existance of the electronic systems that provide assistance in the performance of work and the availability of data and information security systems. Making a list of the authorities on the systems of the company and the auditor shall review these procedures periodically and on a regular basis and inform the Authority in case of any violations or material information affecting the performance of the company (including the occurrence of any breach of information security , the company's headquarters exposure to fire, theft ... etc)

         

         

         

         

         

         

         

         

         

         

         

        16

        An internal control system to ensure the sound application of law, regulations, instructions, resolutions and circulars issued thereunder must be provided.

         

        The explanation of the internal controller's duties in the company, the scope of work of the internal controller from the administrative aspects and how to auditing them, an explanation of the rules and regulations that must be applied by the controller and the the company Bylaws, which the broker must work on auditing them. The explanation of the mechanism of reporting to the Board of Directors and its periodicity, The mechanism of auditing the technical departments and their compliance with the regulations and instructions of the Authority and internal Bylaws.

         

         

         

         

         

         

         

         

         

         

         

        17

        The application of a license to practice the activities of the Insurance Brokerage shall be submitted to the IA according to the designated form enclosing information, data and documents supporting the application for license, particularly:

        1. The legal form of the applicant, along with a report stating the names of the partners, members of the board of directors or management board and the executive management.

        2. An acknowledgment that the partners and the Director General or Chief Executive Officer have never been declared bankrupt, as well as providing certificates of good conduct confirming that none of them has been sentenced for a freedom restricting punishment.

        3. A statement showing any legal or judicial obligations or liabilities related to the applicant.

        4. A statement showing the technical systems used and the work procedures proposed for practicing the activity of Insurance Brokerage.

        5. Types and classes of the insurance business applied for.

        6. Training and Emiratization plan for AUE nationals.

         

        The Compliance Officer shall keep all records and documents related to the Company's license, the partners and managers and review them periodically to ensure their validity. In the event of any change in the work , he shall report directly to the Authority. This must be included in the Internal Control Guide and the interim and annual audit plan approved by the Company's Board of Directors .

         

         

         

         

         

         

         

         

         

         

         

        18

        7. In addition to the above, a branch of a foreign company, or a branch of a company incorporated in a financial free zone shall submit the following:

        a. An official certificate issued by the competent authority showing the company’s incorporation, registration and licensing to practice the activity of Insurance Brokerage in the types and classes of insurance to be practiced in the UAE.

        b. A copy of the financial statements for the last two years audited, approved and prepared in the UAE Dirhams.

        c. A true copy of the board of directors' or management board’s decision approving the opening of a branch in the UAE.

        8. An undertaking to satisfy all license conditions required in case of approving the application for license within the period determined by the IA; otherwise the approval shall be null and void; as well as undertaking not to start practicing the activity before the IA ensures that the applicant has satisfied all license conditions and IA’s approval in this regard is issued.

         

         

         

         

         

         

         

         

         

         

         

         

         

        19

        An Insurance Broker may add a type or class of insurance to the granted license under an application to be submitted to the IA on the form designated for this purpose after meeting all the related conditions and requirements.

         

        The broker may add brokerage to a type of insurance and can add insurance brokerages, and notify the Authority of any additions made to the previously licensed services.

         

         

         

         

         

         

         

         

         

         

         

        20

        The license shall be renewable under an application to be submitted to the IA at least one month prior to the expiry date ،

         

        The compliance officer must ensure that the license conditions in the regulations are met, especially during the last month during renewal of the license (automatic or electronic renewal).

         

         

         

         

         

         

         

         

         

         

         

        21

        The Insurance Broker may not practice their activity during the suspension period. In all cases, the Insurance Broker may request to resume the practice before the end of the suspension period whether the suspension was optional or when the preventing cause ceases to exist.

         

        Ensure that the suspended broker or the broker who requested for suspension does not exercise any new work and confirming that the broker continue to follow up on the interests of existing companies, clients and beneficiaries before issuing the suspension decision.

         

         

         

         

         

         

         

         

         

         

         

        22

        Producing of written internal bylaws within (3) months from the date of obtaining the license, and providing the IA with a copy thereof, subject to amendment of such bylaws in accordance with any amendments made to the Law, regulations, instructions, resolutions and circulars issued by the IA and notifying the IA thereof.

         

        The Compliance Officer shall review the internal Bylaws adopted by the Board of Directors of the Company and submit the amendment proposals for approval by the company's Board of Directors and notify the Authority through the quarterly internal control report to review the procedures and ensure their application and inform the Authority in case of amendment thereto.

         

         

         

         

         

         

         

         

         

         

         

        23

        The Internal Bylaws shall include the following data:

        a) The documentary cycle to be followed as of the beginning of dealing with a company and client, until the full completion of the insurance transaction.

        b) The organizational structure of the Insurance Broker showing the actual functions, responsibilities and powers of directors and other employees working for the Insurance Broker.

        c) The relationship between the headquarters of the Insurance Broker and its branches; and determining the powers that the branch is authorized to practice.

        d)Correspondences recording system.

        e)Internal record-keeping system.

        f)Clients' complaints recording system.

         

        The documentary course to be followed in dealing with brokers and insurance companies: It is a simple explanation of how to implement the service to the customer and contact with the insurance company with illustrations for the documentary course , the organizational structure of the broker, explaining responsibilities and tasks , powers of the branches of the company ( powers of the branch and the director and what types of insurance brokerage, Mailing system: a simple explanation of the outgoing and incoming mail system and that there is a specific mail for each department mentioning it a mail for complaints and a separate mail to respond to inquiries of customers. The system of keeping the internal records and the way they are saved (archiving). The electronic system of the company in terms of keeping files and records of customers and where to they are saved.

         

         

         

         

         

         

         

         

         

         

         

        24

        Producing an Operational Guide for risk management to include the listing and definition of the specific risks that could be encountered and how to address them once realized. The Guide shall be updated and reviewed periodically as appropriate to the nature of the Insurance Broker business and according to the applicable rules in this regard.

         

        The Operational Guide for Risk Management Operational (includes definition, enumeration and treatment of risks related to brokerage business), such as the risk of nonpayment by the customer, the risks of customer unreliability, the risk of money laundering, the risk of electronic system security breach. The risks of labor turnover, etc. This shall be reviewed and verified periodically.

         

         

         

         

         

         

         

         

         

         

         

        25

        Development of a professional code of conduct for the Insurance Broker employees; and supervising and organizing their undertakings to ensure compliance with the Law, regulations, instructions, resolutions and circulars issued by the IA, especially those related to trust, integrity and conflict of interest.

         

        The Compliance Officer shall ensure that the Company has established a Code of Conduct and that the Company's management is required to send all regulations and instructions to all the concerned employees of the Company and ensure that they are informed of the circulars issued by the Insurance Authority which regulate the work.It is preferable to register all queries received by employees and the response received by the company's management through the compliance officer, which helps to control the compliance mechanism.

         

         

         

         

         

         

         

         

         

         

         

        26

        When practicing the activity of Insurance Brokerage, the Insurance Broker and their branches shall be independent from any other party in terms of place or organizational, technical or administrational aspects.

         

        Ensure the separatation of the headquarters of the broker and not to be engaged in any activity other than insurance brokerag.

         

         

         

         

         

         

         

         

         

         

         

        27

        Cooperation and coordination with the internal controller, enabling him/her to perform the assigned tasks and notifying the IA of any violation of the Law or the regulations, instructions, resolutions or rules issued thereunder, or the applicable internal bylaws.

         

        The internal controller and the company's management shall cooperate in order to implement the regulations and laws. The internal controller shall submit reports of the non-compliance of the senior management with the application of the regulations and instructions and the non-implementation of the corrective plans.The company's management must provide justification for not complying with the corrective plans approved by the Authority.

         

         

         

         

         

         

         

         

         

         

         

        28

        Not to dismiss the internal controller except by a decision of the board of directors or management board of the Insurance Broker, provided that the IA and the internal controller are notified of the dismissal decision at least (30) working days before such dismissal, explaining the causes and justifications of the dismissal.

         

        The internal controller shall immediately notify the Authority in case he submitted his resignition to the company management. Also, the company management shall notify the Insurance Authority in case of the dismissal of the internal controller in accordance with the provisions of Article

         

         

         

         

         

         

         

         

         

         

         

        29

        Open an independent account with a bank operating in the UAE to be designated for the financial transactions related only to the Insurance Brokerage business. Such account shall be subject to audit by the IA.

         

        Ensuring that there is an independent insurance brokerage business in terms of receiving and paying insurance premiums

         

         

         

         

         

         

         

         

         

         

         

        30

        Complete separation between the Insurance Broker's personal accounts and the accounts related to the Insurance Brokerage practice.

         

        Ensure the separation of the accounts of the broker through the review of the agreement to open the account with the bank and review the periodic bank statements of the contracted accounts to confirm the cash inflows and outflows.

         

         

         

         

         

         

         

         

         

         

         

        31

        Refrain from obtaining any interests on the funds deposited in the account of the Insurance Brokerage business, or from holding such funds in the form of time deposits, or to obtain credit facilities or bank loans secured by such funds.

         

        Ensure that the type of account dedicated to practicing insurance brokerage activity is the type of current accounts not related to access to credit facilities or bank loans with the guarantee of these funds or the placement of funds obtained in the form of fixed deposits and the the agreements for opening the account must review.

         

         

         

         

         

         

         

         

         

         

         

        32

        Maintain the financial solvency required to practice the activity in a manner to ensure the continued performance of its obligations according to the rules set by the IA.

         

        The terms of financial solvency mentioned in Decision No. 58 shall be reviewed in terms of the availability of the minimum paid-up capital and, on a permanent basis, availability of bank guarantees and availability of adequate liquidity in accordance with the decisions of the Insurance Authority.

         

         

         

         

         

         

         

         

         

         

         

        33

        Abide by the limits of insurance types and classes which the Insurance Broker is licensed to practice.

         

        Not to practice insurance brokerage in a new type or branch of insurance before obtaining the license.

         

         

         

         

         

         

         

         

         

         

         

        34

        Not to manage or bear any insurance risks.

         

        The commitment to the insurance brokerage and the broker shall not take the insurance company place to insure risks or shoulder risks of insurance .

         

         

         

         

         

         

         

         

         

         

         

        35

        Conclude Insurance Brokerage agreements with companies; and providing the IA with true copies thereof within a maximum period of one week after the date of their signature, as well as any amendments or alternations thereon once made.

         

        All agreements signed with insurance companies must be uploaded on the website, and the insurance companiesshall be followed up in order to approve the agreements on the system.

         

         

         

         

         

         

         

         

         

         

         

        36

        Conclude at least two Insurance Brokerage agreements with companies within (60) working days after the license date. .

         

        There must be at least two agreements with the insurance companies. In case of non-existence, the Authority shall be notified if the number is less than two in any case.

         

         

         

         

         

         

         

         

         

         

         

        37

        Not to depend only on one company at any time to practice the activity in the UAE.

         

        If the concentration ratio increases above 75%, a plan should be developed to reduce the concentration to the average for one company.

         

         

         

         

         

         

         

         

         

         

         

         

        38

        Maintain the records, documents, accounts and financial statements that show the Insurance Broker's financial position, transactions, Insurance Brokerage agreements concluded with companies, authorizations issued by Clients, Clients' data, copies of insurance policies issued to such clients, and any other documents or data related to the practice for a period of (10) years,

         

        Develop a plan to maintain all documents in electronic and paper format and to inform the Authority directly in the event of any type of damage.

         

         

         

         

         

         

         

         

         

         

         

         

        39

        Back-up copies of all such statements and documents shall be maintained for the same period in order to protect the clients’ data and transactions against any causes of damage. The IA shall be allowed access to obtain and review same on demand.

         

        A plan should be developed to maintain backup copies of the data and documents and make periodic reviews to verify the mechanism of conservation and ensure that it can not to be damaged or hacked.

         

         

         

         

         

         

         

         

         

         

         

         

        40

        The fiscal year shall commence on the first day of January and ends on the thirty-first day of December every year, provided that the balance sheet and the closing accounts are prepared in the UAE Dirham.

         

        Ensure that the audited financial statements submitted to the Authority are prepared in accordance with international standards in the preparation of financial statements. The fiscal year begins on the 1st of January and ends on 31st December of each year. The financial statements are prepared in the UAE Dirhams.

         

         

         

         

         

         

         

         

         

         

         

         

        41

        A quarterly report signed by the Chairman of the IA Board of Directors, the Director General or Chief Executive Officer, and audited by the external auditor. This report shall address the Insurance Brokerage business and the accounts related thereto, and shall be submitted within a maximum period of (20) working days from the end of the quarterly period.

         

        The commitment to submit data and documents within the allowed period.

         

         

         

         

         

         

         

         

         

         

         

         

        42

        An annual report signed by the Board of Directors or Management Board and audited by the external auditor. This report shall include all Insurance Brokerage business performed during the year, the accounts related thereto, the closing accounts and the annual balance sheet; and shall enclose a copy of the Insurance Brokerage agreements that have been concluded with companies. This report shall be submitted within a maximum period of (60) working days from the end of the fiscal year.

         

        The commitment to submit data and documents within the allowed period.

         

         

         

         

         

         

         

         

         

         

         

         

        43

        To immediately notify the IA of any change occurring on the data or documents based on which the license was granted within (5) working days from the date of occurrence of such change; and of any deficit affecting its financial position.

         

        Any amendments shall be notified to the Authority within the specified period

         

         

         

         

         

         

         

         

         

         

         

         

        44

        Inform the IA of the content of advertising campaigns to promote its services before presenting to the public. .

         

        Obtain the approval of the Authority before making any public announcement.

         

         

         

         

         

         

         

         

         

         

         

        45

        Insert their name and registration number with the IA on all its papers, correspondence and documents in both Arabic and English languages.

         

        This includes, but is not limited to, paper correspondence, any other paper advertising documents and electronic correspondence

         

         

         

         

         

         

         

         

         

         

         

        46

        Sign an Insurance Brokerage agreement with each Company they deal with. The agreement must be executed in Arabic language, signed by both parties and authenticated before the official authorities. It shall remain in force throughout the period of dealing with the respective Company, and shall include the rights and obligations of each party in conformity with the provisions of these Regulations

         

        Review the agreements concluded with the companies

         

         

         

         

         

         

         

         

         

         

         

        47

        The agreement shall include the following: a) The term of the agreement, how and why it can be terminated;

        b) Types and classes of insurance subject of brokerage;

        c) Geographical scope;

        d) A provision authorizing the Insurance Broker to receive the premiums in favor of the Company in cases where the Insurance Broker is permitted to collect the premiums. However, the Insurance Broker may not use the collected premiums for any other purpose.

        e) The agreed commission for the Insurance Broker, the manner to calculate such, when its due date for payment and its collection procedures.

         

        Review the agreements concluded with the companies

         

         

         

         

         

         

         

         

         

         

         

         

        48

        The agreement may not include the following: a) Authorization to the Insurance Broker to issue insurance policies or endorsements thereto, or to amend policies or endorsements except for the issuance of motor insurance certificates if both parties wish so.

        b) Authorization to the Insurance Broker to receive compensations payable to clients or beneficiaries to be paid to the entitled recipients.

        c) Preventing the Insurance Broker from practicing its activity with any other company.

         

        The insurance broker is entitled to issue vehicle insurance certificates only if the agreement includes this. The agreement may not include any authorization to receive compensation due to customers or beneficiaries for payment to its beneficiaries.

         

         

         

         

         

         

         

         

         

         

         

        49

        Submit all customer information and data which may affect the decision to be taken by the Company regarding the insurance cover, rates and conditions, in order to enable the Company to assess the risks to be insured or to renew its insurance.

         

        Ensure the establishment of internal procedures to send all customer information and data that affect the insurance companies' decision for coverage.

         

         

         

         

         

         

         

         

         

         

         

        50

        Confirming that the Insurance broker sid not receive insurance premiums related to insurance types and classes shown below : a. Life insurance and fund accumulation operations; b. Group health insurance; c. Marine and air cargo insurance; d. Hull insurance; and e. Petroleum insurance.

         

        The agreements and the internal financial and technical procedures must be reviewed to ensure that premiums are not received from these types.

         

         

         

         

         

         

         

         

         

         

         

        51

        Not to use the letterhead of the Company - for which the Insurance Broker works - for their own correspondence or correspondence to their Clients.

         

         

         

         

         

         

         

         

         

         

         

         

         

        52

        maintain the confidentiality of conditions, rates, information and data obtained from the Company and not to disclose such information to other companies. .

         

        Establish procedures to maintain the confidentiality of information or data and periodically review them to ensure that employees and management comply with their obligations.

         

         

         

         

         

         

         

         

         

         

         

        53

        Sign a written authorization with all its Clients to authorize it to perform the Insurance Brokerage business according to the form designed for this purpose and approved by the IA.

         

        The authorization process must be documented through written or electronic authorization.

         

         

         

         

         

         

         

         

         

         

         

        54

        The authorities of the Insurance Broker to communicate with any company licensed by the IA or with any licensed company nominated by the Client.

         

        Ensure that the authorization contains the powers.

         

         

         

         

         

         

         

         

         

         

         

        55

        The responsibilities and authorities of the Insurance Broker regarding the claim procedures for compensation which may be entitled by a Client who reports an insured accident.

         

        Ensure that the authorization contains responsibilities and tasks before and after selling.

         

         

         

         

         

         

         

         

         

         

         

        56

        Not to restrict the Client’s freedom to withdraw or cancel the authorization, and not to charge the Client for any financial costs as a result thereof.

         

        The procedures and accredited authorization must be reviewed.

         

         

         

         

         

         

         

         

         

         

         

        57

        Provide technical advice and on sultation, and inform the Client of the best conditions and rates of the companies and keep the documents proving such and register them in duly organized records. In addition, they must negotiate in favor of the Client and represent them before the Company and not to receive any commission for such negotiation.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        58

        Observe the interests of the Client whether when comparing the conditions, rates and the scope of insurance cover, or in terms of preferring to work with a certain Company rather than others; and not to recommend or advocate any company just because it offers higher commission to the Insurance Broker.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        59

        Ensure that the Client is aware of and has understood the type of service provided and the nature of relationship between them, as well as ensuring that the policy meets all the Client’s requirements.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        60

        Notify the Client of all the details of the insurance policy in terms of insurance cover, coinsurance rate (deductible), if any, the surrender amount prior to the scheduled maturity or before the insured risk is realized, or any other conditions, exclusions or restrictions of the insurance policy.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        61

        Explain the importance of disclosure of the essential and fundamental information when submitting an application for insurance and the consequences of concealing, inaccuracy or invalidity of any data or documents provided by the Client, as well as explaining the Client’s full responsibility for such data and information.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        62

        Explain the importance of disclosing any future changes that may affect the insurance cover during the term of the insurance policy.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controllerperiodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        63

        Explain the method of payment of insurance premiums highlighting the importance of remitting same in due dates, and the consequences that may be incurred due to failure to observe such due dates.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        64

        Send insurance policies to Clients without undue delay, enclosing a notice stating the importance of reading the policy carefully.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        65

        Explain the procedures that must be followed by the Client in case the insured risk occurs; and assist in the negotiations with the Company regarding the claims arising from the occurrence of the said risk; and notify the Client immediately of Company's decision to accept or reject the provision of the insurance cover related to such claims.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        66

        Deal in accordance with the principles of good faith and transparency and professional rules and ethics, subject to the confidentiality of the Client's data and information

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        67

        Inform the Client in writing (20) days before the expiry date of the insurance policy so that the Client can expresses their desire in writing regarding the following:

        a) Renewal of the insurance policy with the same Insurance Broker or not.

        b) Renewal of the insurance policy with the same company under the same conditions, or with the same company under different conditions, or with another company according to other proposal presented by the Insurance Broker to the client.

         

        Include the internal procedures of the company and the compliance with the provisions of the article and the internal controller periodic review to ensure the commitment of the company's employees.

         

         

         

         

         

         

         

         

         

         

         

        68

        The Insurance Broker may not open branches thereof in the UAE unless after obtaining the IA approval for each individual branch

         

        Ensure the approval of the Authority prior to the activity in any branch.

         

         

         

         

         

         

         

         

         

         

         

        69

        A decision is taken by the board of directors or management board of the Insurance Broker to open a branch thereof.

         

        The need for a decision by the Board of Directors or the Board of Managers concerning the branch opening .

         

         

         

         

         

         

         

         

         

         

         

        70

        The appointment of an officer in charge of the branch who must satisfy the conditions stipulated in the rules issued by the Director. The branch officer shall submit an acknowledgment that he/she is fully responsible for of the actual management of the branch.

         

        The necessity of the availability of technical staff in accordance with the conditions of the Authority.

         

         

         

         

         

         

         

         

         

         

         

        71

        . A minimum period of two years has elapsed since the Insurance Broker was licensed during which the Insurance Broker must have actually practiced the activity and have not been subject to any administrative fines or penalties.

         

        The necessity to ensure the availability of the condition before submitting documents to the Authority.

         

         

         

         

         

         

         

         

         

         

         

        72

        The volume of premiums achieved by the Insurance Broker during the fiscal year preceding the application for approval must be at least AED 3,000,000.

         

        Review the annual financial statements for the last fiscal year

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         
        Secondly: Risks
        مRisksThe RiskRisk CausesThe strategy to deal with risksHigher Management recommendationsThe taken corrective proceduresPeriod forcorrecti onAttachment
        HighMediumLowNon
        1Firstly: Operational risk
        Operational RiskManagement Risk 1/1          
        Degree of competence and qualifications of management          
        Rewards and incentives          
        financial structure risks          
        Ratio of financial flows to operational activity          
        Information technology risks 3/1          
        Data back up          
        Administrative risk 1/4          
        Staff competence and qualifications          
        Company Structure          
        2Secondly: Financial Risks          
        Financial efficiency 2/1          
        Financial RisksCapacity to cover long-term commitments          
        Liability to capital ratio          
        Liquidity 2/2          
        Volume of cash and cash equivalents          
        current assets to current liability ratio          
        Capital Efficiency 2/3          
        Total equity          
        Cumulative loss ratio          
        3Thirdly: Credit risk          
        Credit RiskCredit risk 3/1          
        The volume of funds allocated for insurance brokerage business          
        interest rate risk 3/2          
        Ratio of interest expenses to taxes          
        4Fourthly: Compliance Risk          
        Compliance RiskIndependence 4/1          
        The clarity of the Controller position in the organizational chart of the company          
        Reporting the Internal control report to the Board of Directors          
        Risk Management 4/2          
        The existence of a detailed risk management manua          
        Identify the risk management or compliance officer          
        The reports of risk management or compliance officer          
        5Fivthly : Legal risks          
        Legal RisksNon-compliance with laws and regulations 5/1          
        Violation of laws, regulations and legislation          
        incorrect Interpretation of legislation          
        Documentation and filing 5/2          
        not keeping any required documents          
        Failure to observe the legal period o retention of documents          
        Methods and mechanisms of document retention          
        6Sixthly : Other risks          
        Other RisksConcerntration Risks 6/1          
        Increase in Account Recivable for one customer          
        A large percentage of the company's revenues are coming from one customer          
        reputation of the company risks 6/2          
        The company positon towards lawsuit against it and vice versa and their impact          
        Customer complaints against the company and their effects          
        The company’s violations of the Authority and the markets and their impact          
        Others 6/3          
        Currency exchange risk (in the case of foreign investments)