The new regulation toughens the conditions of brokerage practice

A summary of the new rules introduced by the UAE's Insurance Authority reveals several changes in financial conditions relating to brokerage practice.

According to the information published by the firm Clyde & Co:

• Paid-up capital has increased from 272.000 USD to 816.000 USD for local brokers and to 2.7 million USD for foreign firms.
• The amount of the unconditional bank guarantee passes to 816.000 USD with an additional of 272.000 USD per branch for local firms, and 1.4 million USD with an additional of 816.000 USD per branch for foreign firms.

Relationships with clients and insurers are also modified. Brokers are now required to sign a formal contract (only in Arabic) with insurers, as well as the formal prohibition to perform any service without the signed agreement of the client.