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insurance company in dubai

How to setup an Insurance company in Dubai

Starting an insurance company in Dubai is not an easy task, but if you are passionate and have the right focus on building your own insurance agency, perhaps you can see a considerable change in achieving potential profit and stability. You have to obtain a license from Insurance Authority Dubai, to become an independent insurance agent often needs a lot of business planning and have a long term future forecast in the financial sector. Definitely, it is one of the fast-growing sectors in UAE, make sure to look out for your choices which brings the best in covering insurance and reinsurance company setup Dubai. Dubai International Financial center free Port(DIFC) has its own laws and manners which provides a strong base for insurance agencies and monetary companies in prolific free zones Dubai. Each and every newly opened insurance companies in Dubai should do their activities based on their rules and regulations.

There are different attributes that are allowed to work as insures in Dubai,

  • Insurance company
  • Insurance agencies
  • Insurance brokerage
  • Insurance consultants
  • Actuaries
  • Loss or Damage Adjusters

Major requirements of getting an Insurance License in Dubai

Regardless of the type of insurer, one must incorporate their insurance business setup in Dubai for issuing the license by the insurance authority. You should prepare your relevant documents to be submitted along with the application and registered under the law of commercial companies in the UAE. Depends on your location of the entity, the share capital will vary. If you are planning to open in the mainland, the share capital requirement is AED 3 million whereas in a  Freezone branch the share capital will be AED 10 million. You have to submit your papers showing locally situated Freezone insurance companies have long term sustainability. Most free zones require you to rent Customisable office space for rent in Dubai with extra facilities to operate you as an insurance center. For example, License costs and requirements will be different fr insurance consultants and insurance agents.

  • Bank Guarantee along with a professional indemnity insurance policy
  • Administrative and technical employee s appointment(CEO, operations manager, auditor, and specialized insurance professional)
  • Software and Technical solutions 
  • Insurance applicant agreement signed with UAE bank
  • Proper management system for laws and resolutions
  • Receipt of predefined fees and additional if any

Different types of Insurance Activities

  • Life insurance and Reinsurance
  • Medical Insurance
  • Vehicle and transportation insurance
  • Accident coverages
  • Fire and safety insurance
  • Personnel insurance
  • Public liability
  • Home insurance
  • loss or damage adjusters
  • Building insurance
  • Travel insurance (visa services in UAE)

Steps to start an Insurance company in Dubai

  • Choose a successful Business plan

Put your constant efforts into making a profitable and successful plan and make sure you are on the right track. Choose your potential partners and find the financial resources for your insurance company. Your target plan has a space to study your competitors and market. The insurance company has to overcome all risky situations in there and it is mandatory to set your long-term financial budget.

  • Choose the legal structure of your insurance company

It is important to structure your business depends on the services you are provided and each has its own risks and advantages. Examples are partnership, Freezone setup or offshore, LLC, etc. You should categorize your structure in a way that provides safety on your personal assets and capital incomes.

  • Choose your trade name 

Always select an easily searchable name for an insurance company in Dubai and it should meet the standard naming conventions. Your trade name will be confirmed and registered by DED for further processing.DED will select your name from 3 options reserving all the laws.

  • Initial Approvals

Once the trade name reservation is done, the insurance applicant list the different types of activities, and all the necessary documents should be submitted to DED, and the Local Service Agreement will be drafted in English or Arabic as per the need of the applicant.

  • Obtain your company license and related permits

After getting initial approvals, all the partners must sign the Memorandum of association agreement in presence of a court person. Photocopies of the agreement will be hand over to the service provider, court, local agent, and partner. Pay the incurring costs and DED will register your firm commercially and the payment voucher is going to be out. You can add your P.O and other details once your license is received.