UAE's new life insurance regulations to improve sector
Wednesday, 11 04 2020, Category: Insurance and Reinsurance, Country: U.A.E
A new set of regulations governing the UAE’s life insurance market, effective from October 15, 2020, that drastically reduces brokers’ commission from 40-70 percent in the first year to 10 percent, might be good for the insured person and his beneficiaries, and help the Dh9.5 billion life insurance premium market to expand in the coming months.
The new regulation makes the Term Life Insurance more attractive for expatriates to buy the product from UAE insurers than from the insurers in their home country. This way, the UAE might see an increase in the Term Life Insurance policies, therefore raising the insurance penetration level in the coming years.
However, the new regulations might severely affect the overall life insurance sector as most brokers might find themselves out of business due to a fall in their earnings.