UAE Central Bank suspends foreign insurer’s motor insurance operations over solvency breach

The Central Bank of the UAE (CBUAE) has halted the motor insurance operations of a foreign insurer’s branch after the company failed to meet mandatory solvency and guarantee requirements.

The suspension, announced under Articles 33 and 44 of Federal Decree Law No. 48 of 2023 regulating insurance activities, does not absolve the insurer of its obligations. The company remains responsible for honoring all insurance contracts signed before the decision took effect.

According to the central bank, the move came in response to the insurer’s breach of financial thresholds and regulatory requirements governing the UAE insurance market.

In a statement, the CBUAE emphasized its commitment to enforcing compliance across the insurance sector, noting that it continues to monitor insurers, owners, and employees to uphold transparency, integrity, and stability within the country’s financial ecosystem.