The UAE life insurance market dictates a new set of regulations, which significantly reduces merchants' commission from 40-70% in the first year to 10%, which may be in the affair of the insured and its successors, and help the AED 9.5 billion life insurance reward market expand in the upcoming months and year. The new regulation could significantly affect the overall life insurance sector, with most financiers finding themselves unemployed due to their low earnings.
2 general types of Life insurance:
- Life insurance and non-life insurance. With life insurance, the policyholder maintains the plan active by paying insurance premiums to the insurance company. When the policyholder dies, the insurance firm pays a lump sum to the beneficiary appointed by the policyholder.
- The prevalence of life insurance in the UAE is already low, with only 0.7% of the UAE population having some life insurance protection.
New Life Insurance Rules and Regulation 2021
The new regulation 2021, known as the UAE Insurance Authority's 49th Board of Directors' Resolution 2019, will begin the new life insurance policy more straightforward and cheaper while making insurance companies responsible and previously able to customers. There are 62 active insurance corporations in the UAE, including 35 nationwide insurance firms and 27 foreign insurance companies. Only 12 of them are involved in the sale of life insurance products. The new regulation seeks more knowledge on policy expenses and risks related to insurance conditions and commissions and fees required by the insurance company and brokers. However, any violation of this right, such as urging the policyholder, would be deemed a breach of professional policy rules. The insurance corporation must have a policy to comprehensively improve the premium if the procedure is abandoned during the free view limit. The insurance policy is a contract between the policyholder and the insurance business. Insurance penetration worldwide equated about six percent but appears to be expected to rise in the following years and will be driven mainly by emerging markets.
PRO GCC will help you to get your desire life insurance policy immediately. Just contact us to get a prompt reply about your life insurance documentation and procedure for Dubai UAE