How to Start an Insurance Brokerage Business in Dubai, UAE, and other Middle East Countries

How to Start an Insurance Brokerage Business in Dubai
How to Start an Insurance Brokerage Business in Dubai

Are you looking forward to the establishment of the insurance authority in Dubai this year?  Starting insurance brokerage is the way to go if you want a board of directors and general manager to oversee all of your transactions and concerns in your insurance industry.

Therefore, to set up an insurance brokerage in Dubai, UAE, you will need to obtain a license from the Dubai Financial Services Authority (DFSA). Once you have obtained your license, you will need to find an office space and hire staff, an operation manager, and some technical staff of the insurance broker in the UAE. Furthermore, you will also need to register with the Dubai Chamber of Commerce and Industry as an additional requirement.

However, getting an insurance license is a rocky process, especially if you are a person mediating independently in insurance. You need connections from an established company formation in Dubai to help you obtain an insurance policy as a regulation of insurance. Should you find any technicalities in your appeal to prescribe to the requirements set by the regulations, please contact our expert consultant at Vigor for your problem resolution?

Now that you know where to get the provision of a suitable help in your insurance industry, let’s dive deeper into the easy steps to open an insurance brokerage in the UAE, this year.

Simple Steps on how to start an insurance brokerage in the UAE

To set up an insurance brokerage in the UAE, here are the sure steps incorporated in the UAE you’d want to adhere to for the success of your insurance industry;

Craft a Plan for Your Insurance Industry Business

If you’re in the insurance industry, you know that it’s a competitive business. To be successful, you need to have a well-crafted business plan. Here are some tips to help you get started:

  1. Define your business. What type of insurance do you sell? Who is your target market? What are your unique selling points?
  2. Develop a marketing strategy. How will you reach your target market? What type of advertising and promotion will you use?
  3. Create a sales plan. What are your sales goals? How will you generate leads and close sales?
  4. Create a financial plan. How much money do you need to start and operate your business? How will you generate revenue and profits?
  5. Write your business plan. Once you have all the above information, put it all together in a clear and concise business plan. This will be your roadmap to success.

Find a suitable location for your insurance brokerage in the UAE

There are many things to consider when finding a suitable location for your insurance brokerage in the UAE. You can decide to set your insurance industry either in the Free zone in the UAE or Dubai Mainland.

Therefore, the first thing to consider is the type of insurance you want to set up.  The type of insurance industry you want to start will also determine the type of specialized employee for each type of insurance category in your business.

If you are looking to set up a small insurance brokerage, then it will be easy to know each employee and the person responsible for every assigned work in the organization. Additionally, you’ll know every person responsible for the branch as you endeavor to work in other organizations.

For those who are inactive, you can issue them a short-term notice of job termination. However, if you are looking to set up a larger insurance brokerage, then you will need a larger office space with all the regulations needed for the insurance industry.

You will want to consider the cost of setting up your office space in the UAE.  Generally, the cost of the office space will determine the types of technical systems in your insurance company. Nonetheless, renting an office space can be expensive, so you will want to make sure that you can afford the rent so that you may have a productive appointment at your office.

Obtain a license from the UAE Insurance Authority.

Finally, you will need to obtain a license from the UAE Insurance Authority. The insurance sector in the UAE is regulated by the Federal Law No. 6 of 2007 and its subsequent amendments. The law stipulates that only insurers or an insurer and insurance brokers licensed by the UAeIA are allowed to conduct insurance activities in the UAE.

Frequently Asked Questions

What Do Insurance Brokers Do in their Sector?

Insurance brokers are professional intermediaries who work with insurance companies to find the best coverage for their clients. They shop around for the best rates and coverage options from a variety of insurers and then help their clients choose the policy that best meets their needs.

Insurance brokers can help with a variety of different types of insurance, including health, life, property, and liability insurance. In the United Arab Emirates, insurance brokers must be licensed by the UAE Insurance Authority to operate as per the report of 2013 concerning insurance brokerage regulations.

What are the requirements for obtaining an insurance brokerage license?

To obtain an insurance brokerage license, applicants must:

  1. Be at least 18 years of age;
  2. Have completed high school or equivalent;
  3. Have completed an accredited insurance broker pre-licensing course; and
  4. Pass a licensing exam.

What are the types of insurers in Dubai?

There are three main types of insurers in Dubai: life, health, property, and casualty. Life insurers offer products such as whole life insurance, term life insurance, and annuities. Health insurers offer products such as medical insurance, dental insurance, and vision insurance. Property and casualty insurers offer products such as homeowners insurance, automobile insurance, and workers’ compensation insurance.

Additionally, there are insurance companies, insurance brokers, and insurance industry players in the insurance industry. Insurance companies are licensed by the Dubai Financial Services Authority (DFSA) to issue and sell insurance products.

Also, a commission from the insurance/reinsurance commission can also instruct the Insurance brokers which primarily acts as act as intermediaries between insurers and customers. Insurance industry players include banks, investment firms, and other financial institutions that offer insurance products and services.

To obtain a license from the DFSA, insurers must meet certain requirements, including having a physical presence in Dubai, having appropriate capital levels, and meeting solvency requirements.  Above all, they must be registered under commercial companies. The Insurance companies must also have a minimum of two board members, one of whom must be a UAE national.

What are the Qualities of an Insurance Broker?

An insurance broker is a professional who helps people find the best insurance policies for their needs. A good insurance broker must have handled different contracts and have a deep understanding of the different types of insurance available and will be able to explain the pros and cons of each to their clients.

They will also be able to find the most competitive rates from different insurers and will be able to negotiate on behalf of their clients to get the best possible deal. A good insurance broker will always have their client’s best interests at heart and will work hard to make sure they are getting the coverage they need at a price they can afford.

What are the criteria for the Licensing of Insurance Brokerage?

Several criteria must be met to obtain a license to operate a company with which the insurance/reinsurance is established. First, the applicant must be at least 18 years of age. Second, the applicant must have a clean criminal record.

Third, the applicant must have completed an approved pre-licensing course. Fourth, the applicant must pass an examination administered by the state insurance department. Finally, the applicant must submit a license application and fee to the state insurance department.