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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.

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

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

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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.

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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.

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

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

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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.

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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.

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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.

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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.

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

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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.

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Governor: The Governor of the Central Bank.

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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.

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

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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.

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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.

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

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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

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

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

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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.

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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.

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Person: Any natural or juridical person.

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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.

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

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

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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.

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

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

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

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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.

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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.

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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.

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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.

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State: The United Arab Emirates.

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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.