“Policyholders will benefit from greater financial security, as their payments will go directly to the insurer, reducing any risk of delays or mismanagement. This also ensures immediate policy issuance and faster claims processing,” said Avinash Babur, CEO of Insurancemarket.
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He added that these are exciting times for the industry , as all brokers are actively working to adjust their workflows and operational frameworks to ensure full compliance with the new requirements before the deadline.
Toshita Chauhan, business head at Policybazaar, said claim payouts and premium refunds must be made directly from insurers to clients.
She elaborated that these requirements will also impact the insurance sales through web comparison portals and other third parties, routed through brokers.“Insurers and brokers must align their operations to reflect these changes by the implementation date.”
She noted that regulation changes will increase employment locally as any offshore services will become local.
Toshita Chauhan
Commission in 10 days brokers
Babur added that this shift removes the financial risk of handling premium collections, allowing brokers to focus on advisory and client service rather than administrative payment management. He added that the new regulations require insurers to settle broker commissions within ten days of each transaction as this structured payment cycle brings greater efficiency and financial predictability to the brokerage sector.
“The faster commission settlement improves cash flow management and allows brokers to operate with more financial stability. This move eliminates unnecessary delays and ensures that brokers are compensated promptly for their services,” he added.
Avinash Babur
However, Toshita Chauhan added that if the premium is received in instalments, pro-rata commissions should be paid accordingly.
No discount
The new regulations prohibit brokers from offering discounts by reducing their commission, which previously created an uneven playing field and encouraged price-driven competition over value-driven service.
“This update is extremely positive for the industry, as it ensures that brokers compete based on expertise, service quality, and value proposition rather than pricing tactics. It encourages higher professional standards and fosters long-term business sustainability,” added Babur.
From the customers' perspective, he added that policyholders will now select brokers based on the quality of advice, service, and policy benefits rather than just cost savings.
Only licensed professionals
Babur elaborated that the new regulations strictly prohibit brokers from entering into financial arrangements with non-insurance entities and paying them commissions for referring businesses.
“This measure reinforces the principle that only licensed professionals should be engaged in distributing insurance products... This change ensures that the distribution of insurance policies remains transparent,” he said, adding that customers will benefit from the fact that policy recommendations are based on expertise rather than financial incentives to third parties.
The CBUAE is also introducing additional oversight on the outsourcing of brokerage activities, ensuring that core functions remain under the control of licensed entities to further strengthen accountability, data security, and service quality, aligning with global best practices.
Minimum capital
Toshita Chauhan locally incorporated brokers and branches of overseas brokers must maintain minimum capital in addition to the bank guarantee, a shift from current practices where the bank guarantee counted towards capital requirements.
“This is likely to strain small and medium-sized brokers financially and may lead to market consolidation in the short term,” said the business head of Policybazaar.
Data protection
Under the new regulation, Chauhan added, personal data must be stored and maintained in the UAE, with a secure backup kept in a separate location for a minimum of 10 years.
“There is an increased emphasis on corporate governance and appropriate risk management frameworks. The Central Bank will apply the principle of proportionality, allowing room for discussions should any requirement not be appropriate for a particular broker, in relation to any of the requirements under the Broker Regulation, subject of course to the discretion of the Central Bank,” she said.