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UAE Brokers Face Tougher Insurance Authority Rules

Rima Mrad, a Partner at Dubai-based law firm BSA Ahmad Bin Hezeem & Associates LLP (former Bin Shabib & Associates), has stated these new requirements should be a positive step for the UAE’s brokerage sector, improving standards and encouraging mergers and acquisitions.

For the first time, the new rules will require broker firms to obtain and hold professional indemnity insurance cover, and with evidence of this cover registered with the IA. Again there is a discrepancy between local and foreign firms, with the former needing cover above AED 2 million and the former of AED 3 million.

Mrad notes that the legislation – which had not been formerly announced at the time – is similar to a draft version released in October last year which tightened and clarified a small number of highly specific points.

Overall, Mrad had stated that the legislation was a significant improvement on the old rules, and much clearer.

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Published: February2014
Publication: iExpats (Investing Expatriates)
Title: UAE brokers face tougher Insurance Authority rules
Practice: Insurance
Authors: Rima Mrad
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