The Insurance Authority imposed a moratorium on approving licence applications in 2008 during the height of the global financial crisis, and at a point when Dubai was suffering particularly badly.
However, a translation of the newly published rules seen by International Adviser provides a series of chapters which discuss the application process, suggesting the Insurance Authority may be about to lift its ban.
Specifically, the Authority gives nine points in “Article 7” of the new rules describing the process for applying for a licence for insurance brokers. While there has been no confirmation from the Insurance Authority it is about to lift its ban on providing new licences, the inclusion of this Article with the new rules, suggests this may be about to change.
The new rules are set to come into force at the end of November and, as revealed last month, will put increased financial pressure on insurance brokerages in the UAE, particularly smaller offices.
Among the many changes being made by the regulation is a significant increase in the paid up capital required by firms, jumping from AED1m to AED3m for locally incorporated firms and to AED10m for foreign companies.
Another point clarified by the new rules is that an insurance broker can only work for one licensed intermediary. This has always been the case, but has been abused by some brokers in the UAE.
Last month, International Adviser reported that Zurich had placed its terms of business with broker firm Continental under review. While neither company would confirm any details, there has been industry speculation the review was over concerns Continental was one company which allowed other brokerages to trade under its licence.
