The Insurance Authority has issued a decision to impose administrative fines on certain insurance brokers and agents operating in the State for violating the provisions of the regulations and instructions related to the organization of their operations. These insurance brokers and agents violated the provisions by carrying out their operations through branches not licensed by the Authority in accordance with the conditions specified by law to open branches of the company inside the State.
The imposition of these fines is part of the Insurance Authority's efforts and keenness to strengthen the legislative base for regulating the UAE insurance sector and develop the performance of the local insurance market and the entities operating in the State on a strong legal, technical and financial grounds. Eventually, increasing the competitiveness of the sector in accordance with the best practices.
The Insurance Authority is currently working to support the legislative framework in order to improve the legislative environment of the insurance sector in line with international principles of regulation, supervision and control.
The decision includes the obligation of all companies to adhere to the laws, regulations and instructions governing the operations related to insurance to avoid the imposition of more severe penalties. Therefore, the Authority calls upon all parties to the insurance relationship to comply with the provisions of the Federal Law No. (6) of 2007 Concerning the Establishment of the Insurance Authority and Organization of the Insurance Operations, and with all regulations, instructions and decisions issued pursuant thereto.
Furthermore, the Insurance Authority emphasises that the administrative decision intended to assist the concerned companies to carry out their operations in accordance with the provisions of the pertinent laws and legislations and to ensure their compliance with the proper professional conduct towards the Authority, the competing companies, the insured and the customers, in a manner that guarantees the protection of the rights of the insured and those who deal with insurance.