The initial proposals included a ban on indemnity commissions and a cap on commissions payable for savings, term, and bancassurance life products.
It also proposed minimum death benefits, for example 25% of the value of the product for single premium products held by under 45 year olds; a 20-working day ‘free look period’ following purchase; and a compulsory disclosure regime setting out detailed requirements around commission and fees disclosure as well as product performance criteria.
Companies were intially given two weeks, later extended by a further two weeks, to respond to what have been described as game changing regulations.
The move by the UAE’s main life insurance regulator had been widely expected, although it was thought that it could take at least two years to come to fruition.
The industry source said that the proposals have seen a number of IFAs in the UAE trying to sell their businesses.