Brokerage, premiums’ settlement

Emirati brokers asked the authorities to review the new regulation pertaining to the disbursement of premiums to insurers. In force as of March 1, 2012, this provision is part of a large plan designed for the modernization of the insurance business. It stipulates that any policy underwritten by a broker shall be done in the name of the insurance company. The disbursement of the premium to the insurer shall be carried out within 60 days. The premiums collected can no longer be used by the brokers for their short-term financing needs.