The central bank stops vehicle insurance activity for a foreign insurance company branch

The United Arab Emirates Bank decided to stop vehicle insurance activity for the branch of a foreign insurance company operating in the country, according to Articles (33) and (44) of the decree of Federal Law No. (48) of 2023 regarding the regulation of insurance activities. The insurance company remains responsible for all the rights and obligations arising from the insurance contracts concluded before the date of the suspension decision.

This procedure comes as a result of the company’s failure to fulfill its obligations related to the requirements of financial solvency and guarantee, in accordance with the law and regulations that regulate the work of insurance companies in the country.

Through its regulatory and organizational duties, the central bank is destroyed by ensuring the compliance of all insurance companies, their owners and employees with the laws in force in the United Arab Emirates, the regulations and standards adopted by it, with the aim of preserving the transparency and integrity of the insurance sector, and protecting and stabilizing the state’s financial system.