Brokerage, amendments to the insurance code

The Emirati authorities have amended the law governing insurance brokerage, a change designed to upgrade the business and meet international standards. The main changes pertain to the amount of capital, bank guarantee and to the management of each subsidiary by qualified staff.

Minimum paid-up capital increases to 3 million AED (817 000 USD) for a broker falling under the status of local commercial companies. It is of 10 million AED (2.7 million USD) for a broker acting as a subsidiary of a foreign company. This capital is set at 10 million AED (2.7 million USD) for a dealer established in an offshore area. Bank guarantee is set at 3 million AED (817 000 USD) for local brokers and 5 million AED (1.3 million USD) for foreigners and those located offshore. Finally, one of the key positions (general manager, CEO or auditor) of any branch must be entrusted to a qualified employee. Regulators have granted brokers on the market one year to adapt to these new guidelines.