Life insurance: a revised regulation in the UAE

The Emirati life insurers will face major changes due to the new regulations. First, the text shall impose a tighter control over the methods of payment of commissions paid to the various distribution channels. Second, insurers will be required to prove the soundness of their investments.

Another important point is that the insured will have a right of withdrawal for 30 days after underwriting a life policy. The new regulations will come into force on April 16th, 2020. These latter might decrease the number of intermediaries and bancassurance operators. In the short term, the market could face a shortage of life products.