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Pinsent Masons has detailed how the Central Bank of the UAE now applies stricter criteria when assessing insurance licence applications as part of a revamped regulatory structure. The framework incorporated in Federal Decree-Law No. 6 of 2025 enables the regulator to turn down applicants if their presence would not add value to the local insurance sector or align with national economic priorities. This marks a material evolution from the prior regime and forms one element of the consolidated oversight applied to banks, insurers and other financial institutions.
The CBUAE rulebook prohibits any person from engaging in insurance brokerage activities within the state without a licence from the Central Bank. Applicants must select from defined licensing categories that include primary insurance operations and reinsurance, with each carrying distinct operational parameters. The regulator must communicate its decision on any application, whether approved with conditions or rejected with stated reasons, within 20 business days.
An insurance company requires minimum subscribed and paid-up capital of 100 million AED while a reinsurance company needs 250 million AED, according to Cabinet Resolution No. 42 of 2009 as amended and referenced in the CBUAE licensing regime. At least 51 per cent of the capital of a UAE-incorporated insurer must be held by UAE or GCC nationals or qualifying juridical persons wholly owned by them. Branches of foreign insurers must meet parallel standards including submission of home authority licensing proof.
Central Bank of the UAE figures show gross written premiums across the insurance sector climbed 14.9 per cent year on year to Dh74.8 billion in 2025. Health insurance accounted for Dh30 billion of that total while property and liability business contributed Dh36.4 billion. Claims paid by insurers during the year rose 11 per cent to Dh46.2 billion, according to the same data.
An Alpen Capital assessment found the UAE insurance market is forecast to reach 91.75 billion dirhams by 2030, expanding at a compound annual growth rate of 4.1 per cent from the 75.2 billion dirhams recorded in 2025. Non-life insurance premiums are expected to reach 77 billion dirhams over the same horizon at a 4.3 per cent annual pace. The projections incorporate the effects of mandatory health coverage rules introduced at the start of 2025 and rising demand for protection products.
The Insurance Brokers’ Regulation 2024, effective from 15 February 2025, imposes stricter governance, capital adequacy, conduct and professional qualification requirements on licensed brokers, a development covered in Pinsent Masons’ review of the updated framework. Non-compliant firms face administrative fines of up to AED 1 billion, licence suspension and personal liability for senior individuals under the new law. The changes apply across the UAE excluding the DIFC and ADGM which retain their separate regimes under the DFSA and FSRA respectively.
