New licensing necessities for insurers
On the finish of final yr, the UAE Insurance coverage Authority carried out Board of Administrators Decision No.27 of 2020 Relating to Directions for Licensing Insurance coverage Producers (The Producers Regulation insurance coverage).
The Insurance coverage Producers Regulation launched a brand new idea in UAE insurance coverage laws, specifically the regulated insurance coverage producer (the producer). This follows a normal development by the Insurance coverage Authority to extend the lessons and forms of entities that fall inside their regulatory scope (see, for instance, the introduction of regulated entities equivalent to comparability websites costs and factors of sale).
The Insurance coverage Producers Regulation additionally acknowledges how expertise impacts the way in which insurance coverage insurance policies are marketed and the abandonment of conventional types of enterprise creation.
Insurance coverage producer
An insurance coverage producer is outlined as:
“The pure or authorized individual licensed by the Authority to apply the occupation of promoting insurance coverage insurance policies by peculiar means or by digital means and registered within the register.”
The actions of the Producers are restricted to the advertising of insurance coverage insurance policies by attracting prospects and permitting them to familiarize themselves with the merchandise bought by the authorised Insurer. Producers are entitled to obtain a fee for his or her providers from the insurer for whom they’re advertising.
All growers should be registered with the UAE and licensed insurers can not cope with unlicensed growers.
UAE nationals are allowed to market insurance coverage in every type and lessons. Non-UAE nationals are typically restricted to advertising insurance policies associated to auto insurance coverage and medical insurance, however they could be allowed to market different varieties and lessons beneath sure circumstances.
Phrases & Situations
Quite a few situations are positioned
on producers. For instance:
- A producer can solely cope with one insurer;
- A producer can not cope with insurance coverage brokers;
- A producer could cope with an insurance coverage agent, supplied the approval of the related insurer has been obtained;
- A producer can not keep it up the actions of insurance coverage brokers or brokers;
- A producer can not signal the request on behalf of the consumer;
- A producer can not obtain a premium or pay claims on behalf of the insurer.
Utility course of
Pure and authorized individuals can register as producers. In all instances, candidates should submit a replica of the settlement between the producer and the insurer for prior approval by the insurance coverage authority.
Authorized individuals also needs to be certain that they’re licensed within the UAE and that their enterprise targets embrace the apply of insurance coverage advertising. As well as, they have to additionally submit a letter of no objection from their licensing authority permitting them to function the enterprise of an insurance coverage producer.
In response to the Regulation respecting insurance coverage producers, purposes for registration as a producer might be processed and a call might be rendered inside 15 days of the entire utility.