The Central Bank of the UAE (CBUAE) has suspended the motor insurance coverage enterprise of a international insurance coverage firm’s department following the entity’s failure to satisfy solvency and assure necessities.
The motion was taken pursuant to Articles 33 and 44 of Federal Decree Law No. 48 of 2023 Regulating Insurance coverage Actions, the central financial institution confirmed.
Regardless of the suspension, the insurer stays answerable for all rights and obligations arising from insurance coverage contracts concluded earlier than the suspension took impact.
The CBUAE cited the entity’s non-compliance with solvency and assure necessities specified within the legislation and prevailing laws governing insurance coverage firms within the UAE as the rationale for the suspension.
The central financial institution acknowledged that via its supervisory and regulatory mandates, it “endeavours to make sure that all insurers, their house owners and workers adjust to the UAE legal guidelines, laws and requirements established by the CBUAE to keep up transparency and integrity of the insurance coverage sector and safeguard the UAE monetary ecosystem.”