UAE central bank suspends foreign insurer’s motor business over solvency issues

The Central Bank of the UAE (CBUAE) has suspended the motor insurance business of a foreign insurance company’s branch following the entity’s failure to meet solvency and guarantee requirements.

The action was taken pursuant to Articles 33 and 44 of Federal Decree Law No. 48 of 2023 Regulating Insurance Activities, the central bank confirmed.

Despite the suspension, the insurer remains liable for all rights and obligations arising from insurance contracts concluded before the suspension took effect.

The CBUAE cited the entity’s non-compliance with solvency and guarantee requirements specified in the law and prevailing regulations governing insurance companies in the UAE as the reason for the suspension.

The central bank stated that through its supervisory and regulatory mandates, it “endeavours to ensure that all insurers, their owners and staff comply with the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the insurance sector and safeguard the UAE financial ecosystem.”