Central Bank suspends UAE motor insurer over solvency breaches

Foreign insurance firm’s UAE branch failed to comply with solvency, guarantee obligations

Last updated: July 29, 2025 | 15:22

1 MIN READ

The Central Bank of the UAE (CBUAE)

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Abu Dhabi: The Central Bank of the UAE (CBUAE) has suspended the motor insurance operations of a foreign insurance company’s UAE branch, after the company failed to meet key financial requirements.

The decision, taken under Articles 33 and 44 of Federal Decree Law No. 48 of 2023 regulating insurance activities, prevents the branch from issuing new motor policies. However, the insurer remains fully responsible for all existing insurance contracts issued prior to the suspension.

According to the CBUAE, the action follows the entity’s failure to comply with solvency and guarantee obligations set out in UAE regulations governing the insurance sector.

Also Read: CBUAE fines UAE-based exchange house Dh2 million for violating AML rules

The central bank reaffirmed its commitment to upholding regulatory standards across the industry, stating that all insurers, their owners, and employees must adhere to UAE laws to preserve the integrity of the financial system.

No details were provided on the name of the insurer or whether additional penalties are being considered.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.