UAE – Insurance companies abuse the free zone law
Friday, 07 31 2015, Category: Insurance and Reinsurance, Country: U.A.E
Insurance brokers licensed to conduct business only in the free zones are operating in the local market in order not to follow the conditions imposed by the Insurance Authority.
Local companies confirmed that they are facing unbalanced and unreasonable competition from brokers which are operating without regulation and under conditions which cannot be compared with the rules imposed by the Insurance Authority.
They also fear that the number of brokers operating in the free zones will increase after the Insurance Authority suspended the licenses of brokers which did not abide with the rules of the new system. Therefore, canceled brokers will tend to found companies where they can regain their portfolios so that they retain to the local market through different names and licenses.
Source: Araa News