How to Start an Insurance Company in the UAE?

The United Arab Emirates (UAE), home to a diverse population, attracts entrepreneurs who wish to set up an insurance company. This is because people, homes, and businesses need insurance for a secure life in the country. The UAE insurance industry has evolved into a thriving sector with business owners aiming to leverage the favourable framework and regulations.

When planning to set up an insurance business, you require extensive planning, capital investment, and approval from different regulatory bodies. Let us take a closer look at the insurance industry and explore how to start an insurance company in UAE.

Back to top

Types of Insurance in the UAE

The Central Bank of the United Arab Emirates (CBUAE) regulates activities related to banking and insurance sector in the mainland. In the UAE free zones, relevant regulatory authorities, such as Dubai Financial Services Authority (DFSA), oversee it. UAE permits several types of insurance like:

• Life insurance
• Health insurance
• Home insurance
• Vehicle insurance
• Credits and savings insurance
• Business insurance
• Personnel insurance

Back to top

How to Start an Insurance Company in UAE?

The process involved with establishing an insurance company in UAE is easy when you partner with experienced business setup consultants of Commitbiz. Let us look at how it can be streamlined:

Step 1 - Determine insurance activity: 

The first step is to decide what type of insurance service you are going to offer to the clients. Be it life or business insurance, having a clear business plan helps determine the license which is to be availed.

Step 2 - Select jurisdiction: 

Starting an insurance company in the mainland and free zone have distinct requirements and benefits. You must first select the jurisdiction by conducting thorough market research.

Step 3 - Choose business structure: 

UAE mainland and freezones offer different types of business entities to choose from. Depending on your business goals, you can determine whether you wish to go ahead with a sole proprietorship, limited liability company (LLC), or branch of a foreign company.

Step 4 - Register trade name: 

Once you have a business plan, Commitbiz business setup consultants can help you register the trade name with the Department of Economic Development (DED) for mainland operations or the relevant free zone authorities.

Step 5 - Submit documents: 

Once you receive initial approval, all the necessary documents are submitted to the authorities by Commitbiz on your behalf to obtain the trade license. The payable fees for obtaining the license can also be cleared as part of this step.

Once you have completed the steps mentioned, the authorities provide you with the trade license. You can then conduct business operations within the chosen jurisdiction.

Back to top

Documents Required to Start an Insurance Company in UAE

To obtain a business license for the insurance company in UAE, you must submit the following documents:

1. Copy of business license
2. DED final payment voucher
3. Copy of visa and passport
4. Details of business partners
5. Copy of trade license

Back to top

Types of Insurance Business in UAE

Now that you know how to start an insurance company in UAE, let us find out the types of insurance business you can set up. Below is a list:

• Insurance companies

An insurance company provides coverage for life, vehicle, health, or liability. Companies collect premiums from clients and pay for losses, in case of any unforeseen events.

• Adjusters

Adjusters or claim adjusters work with insurance companies to verify the insurance claims. They investigate damages and help insurance companies reach a settlement with policyholders.

• Actuaries

Actuaries analyse potential risks of future events and help insurers with financial planning and risk management.

• Insurance agents

Insurance agents are the middlemen between insurance companies and their clients. They work with insurance companies by selling policies and guiding customers to choose beneficial insurance plans.

• Insurance brokers/consultants

Insurance brokers act on behalf of clients with the insurance companies. They help customers compare different policies and pick the best coverage for themselves after comparing the packages offered by different insurers.

Back to top

How Can Commitbiz Help?

The insurance industry in UAE is filled with opportunities for investors. Starting an insurance firm can be highly profitable. However, collating documents and obtaining approvals can seem difficult, but Commitbiz experts can make it a cakewalk. Our experienced business setup consultants ensure smooth incorporation for your insurance company in UAE and set you up for success. Get in touch with us today and get started!

Back to top