How to Start an Insurance Company in UAE?

by Zaara 27, Sep 2022

insurance company in uae

The UAE is one of the best financial centers in the Middle East and so establishing an insurance company in UAE is an ideal business. The primary law regulating insurance and reinsurance companies in the UAE is Federal Law No.6 relating to the Insurance Authority and Regulation of Insurance Operations Creation. This law is referred to as Insurance Legislation.

The Dubai International Financial Center free port (DIFC), which has its laws and regulations associated with opening insurance companies, is one of the most prolific free zones in Dubai that inspires the establishment of monetary companies, including insurance ones.

Want to be a Part of the UAE Insurance Industry? Know the Types

The UAE insurance industry is vast and has different types of insurers. There are:

  • Insurance brokers
  • Insurance agents
  • Insurance advisors
  • Actuaries
  • Adjusters for loss and injury

To open an insurance company in UAE, you must first register with the authorities before applying for an Insurance Authority license. The type of service offered decides which operating license is given.

Licensing Requirements for Starting an Insurance Company in UAE

To establish an insurance company in UAE, regardless of the type of insurer, one must first prepare incorporation documents and several other documents related to the activity to be provided.

The only distinction between companies in the insurance industry is the bank guarantee, which is 3 million AED in insurance brokers. However, all insurance companies in Dubai are required to use specialized electronic systems to provide their services. Insurance brokers and consultants in the UAE, may apply for a license,.

How to Start an Insurance Company in UAE?

Just like any other company set up in UAE, there are certain set of procedures to be followed for starting an insurance company in UAE. The procedures are as follows.

Trade Name Reservation

The first and most crucial step in establishing an insurance company in the UAE is to register a trade name with DED. The client must have three name choices, and the title will be approved based on DED availability. The operation code will be a category of the brand name reservation initial approval.

Initial Approval

After the brand name has been reserved, the next stage is Initial Approval. The operation must be listed for initial approval. The list of trading activities is often chosen from the list of activities. All documentation is sent to DED for review and approval and the LSA's Initial Approval Certificate issuance.

LSA Agreement

Once we receive DED's initial approval, an LSA (Local Service Agreement) agreement is drafted. The LSA agreement may be written in Arabic or English and Arabic, depending on the client’s needs. If the LSA is written in English and Arabic, a notary public must be legalized from a Legal Consulting company.

Court Agreement

After the MOA agreement is completed, all spouses and native partners must appear in court to have the agreement notarized in a court representative’s presence. One for the Court Initial, one for Spouse, one for Local, and one for the service provider if needed, four copies of the agreement are completed.

Documentation

Send all of the documents to the DED to receive the Payment voucher. The DED will enter the company into the Commercial Registry, and the Payment Voucher will serve as our trade license.

License Procedures

We can immediately pay the Payment voucher with cash or credit card inside the DED and collect the Trade License. Make the required changes after obtaining the license, such as adding a PO box and other details.

If you are an Insurance Broker in UAE, Gather These Documents to Start your Firm

Being an insurance broker in UAE, demands certain documents to be submitted to start your agency. They are

  • Application Form
  • Trade License copy
  • List of partners
  • Commercial Register (3 copies of trade license)
  • LLC agreement
  • Passport & Visa copy of Authorized Signatory
  • DED Payment Receipt of Trade License

Perhaps you're a professional insurance broker looking to embark on a new venture. Perhaps you're considering a career change and believe that the insurance industry will be an excellent place to begin.

Whatever the reason for wanting to start an insurance company, it is frequently a wise investment. But, even though you've become a licensed agent, it takes a lot of preparation and diligence to get an independent insurance firm off the ground.

We place a higher emphasis on customer relationships, so our solutions are tailored specifically for them. We assist clients with the start-up of their businesses. Whether on the Mainland or in Free Zones, we provide Government and PRO solutions. Our Dubai company creation experts can also help you create insurance companies in the emirate’s free zones. Please contact us for more details on starting a business in Dubai’s insurance sector.

FAQs

What are the documents required to start an insurance company in UAE?

Following documents are required to start an insurance company in UAE

  • Application Form
  • Trade License copy
  • List of partners
  • Commercial Register (3 copies of trade license)
  • LLC agreement
  • Passport & Visa copy of Authorized Signatory
  • DED Payment Receipt of Trade License

What are the types of insurers in UAE?

The different types of insurers are,

  • Insurance brokers
  • Insurance agents
  • Insurance advisors
  • Actuaries
  • Adjusters for loss and injury

Which is the best free zone in UAE to start an insurance company?

Dubai International Financial Center can be one good option.

Is starting an insurance company in UAE profitable?

Yes, UAE is one of the best financial centers in the middle east and hence it is profitable to start an insurance company.

How long will it take to incorporate an insurance company in the UAE?

It depends on the location, scale of your business etc.

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