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.