The UAE’s insurance and risk management market presents a compelling opportunity for businesses seeking to establish a presence in the region. The country’s rapid economic growth, infrastructure development, and robust regulatory framework have created a strong demand for insurance products and services.
As the UAE continues to modernise and expand its economy, businesses are increasingly aware of the need to protect their assets and mitigate risks. This has led to a surge in demand for insurance coverage across various sectors, including property and casualty, health, and liability insurance. Furthermore, the growing threat of cyberattacks has created a demand for cybersecurity insurance products to protect businesses from financial losses and reputational damage.
The UAE’s strategic location at the crossroads of Europe, Asia, and Africa also makes it an attractive market for international insurance companies seeking to expand their reach. The country’s stable political environment, efficient legal system, and world-class infrastructure provide a conducive environment for businesses to operate.
If you want to set up an Insurance and Risk Management Business in the UAE, these are the business activities you can choose:
6510.00 – Insurance Consultancies
These provide professional advice and guidance related to insurance products, including life insurance and non-life insurance. This includes assisting clients in understanding the complex world of insurance, identifying their specific needs, and recommending suitable coverage options. Life insurance often involves a substantial savings element and can include life reinsurance.
6511.00 – Life insurance
Life insurance is a type of insurance that provides financial protection in the event of the insured person’s death. This category includes:
- Underwriting annuities and life insurance policies: This involves assessing the risk of insuring individuals and determining the appropriate premiums.
- Disability income insurance policies: These policies provide a regular income if the insured becomes disabled and unable to work.
- Accidental death and dismemberment insurance policies (with or without a substantial savings element): These policies provide a lump sum payment if the insured dies or suffers a loss of limb due to an accident.
6511.01 – Underwriting annuities and life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies (with or without a substantial savings element).
This involves assessing an individual’s risk and determining whether or not to provide them with insurance coverage. This process, known as underwriting, takes into account various factors such as age, health, occupation, lifestyle, and risk tolerance. For annuities, the insurer calculates premiums based on the annuitant’s age and life expectancy. For life insurance policies, factors like health, age, and policy type are considered. Disability income insurance premiums are based on the insured’s occupation, health, and earning potential. Accidental death and dismemberment insurance premiums are determined by the insured’s lifestyle and activities.
6512.00 – Non-life insurance
Non-life insurance, also known as general insurance, provides financial protection against a wide range of risks other than human life. This includes accidents, illnesses, property damage, and other unforeseen events. Non-life insurance is essential for individuals and businesses to manage risk and mitigate financial losses. By understanding the different types of non-life insurance available, individuals can choose the appropriate coverage to protect themselves and their assets.
6512.01 – Provision of insurance services other than life insurance: • Accident and fire insurance • Health insurance • Travel insurance • Property insurance • Motor, marine, aviation and transport insurance • Pecuniary loss and liability insurance
This refers to a wide range of insurance products that cover risks other than human life. These include accident and fire insurance, which cover losses caused by accidents or fires; health insurance, which covers medical expenses; travel insurance, which covers losses or expenses incurred while travelling; property insurance, which covers losses to property; motor, marine, aviation, and transport insurance, which covers losses related to vehicles, ships, aircraft, and transportation; and pecuniary loss and liability insurance, which covers financial losses and legal liability arising from various events. These types of insurance provide financial protection against various risks and unexpected events, offering peace of mind and helping individuals and businesses recover from losses.
Third-party Approval: Business activities 6511.00, 6511.01, 6512.00 and 6512.01 require third-party approval from the Central Bank of the UAE (CB)/Sharjah Insurance Authority, before the issuance of the license. 6510.00 however does not require third-party approval.
Filing of Economic Substance Returns: This requirement applies to business activities 6511.00, 6511.01, 6512.00 and 6512.01. It does not apply to 6510.00.Anti-Money Laundering Compliance: This requirement does not apply to the business activities mentioned in this article.
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