UAE Insurance Broker License: Requirements and Process

Acting as an insurance broker in the UAE, meaning arranging or advising on insurance policies on behalf of clients rather than underwriting risk directly, requires a specific license from the UAE Central Bank, which regulates the insurance sector following the merger of insurance supervision into the Central Bank's mandate.

Applicants generally need to demonstrate relevant professional qualifications and experience among key personnel, maintain minimum paid-up capital as set by Central Bank regulations, and hold professional indemnity insurance covering the brokerage's own potential liability to clients. A local UAE national shareholding requirement has historically applied to insurance brokerage licensing depending on the specific legal structure, though this has been affected by broader ownership reforms, so current shareholding requirements should be confirmed directly with the Central Bank rather than assumed from older rules.

The application process involves submitting a detailed business plan covering the lines of insurance the brokerage intends to place, its target client segments, and its compliance and complaints-handling procedures, along with background checks on directors and key personnel. Ongoing obligations after licensing include maintaining the minimum capital requirement, submitting periodic regulatory returns to the Central Bank, and complying with conduct of business rules around disclosure of commissions and conflicts of interest to clients.

Insurance brokers are also subject to specific rules around client money handling, since premiums collected on behalf of insurers need to be held and transferred in accordance with Central Bank requirements rather than commingled with the brokerage's own operating funds. Given the capital requirements, ongoing regulatory reporting, and conduct rules involved, setting up an insurance brokerage is a considerably more involved process than standard commercial licensing, and working with a regulatory consultant experienced in UAE Central Bank insurance licensing is generally advisable.