The Central Bank of the UAE has suspended the motor insurance activities of a foreign insurer’s local branch for failing to meet solvency and guarantee requirements under Federal Decree Law No. 48 of 2023.
The suspension was issued under Articles 33 and 44 of the law governing insurance activities in the UAE. While the firm is barred from issuing new motor insurance policies, it remains responsible for fulfilling all existing obligations arising from contracts signed before the suspension.
The central bank said the decision followed regulatory breaches tied to capital adequacy and financial guarantees mandated for insurers operating in the country. The name of the insurer has not been disclosed.
The CBUAE stated that the move is part of its ongoing supervisory efforts to enforce compliance and maintain the integrity of the financial system. It reiterated that insurers, their shareholders, and staff are expected to adhere to local laws and regulatory standards.
The UAE’s insurance sector remains under heightened scrutiny following the enactment of the new federal law in late 2023, which strengthened solvency rules and imposed stricter operational controls on licensed insurers.
