- UAE general insurance companies require a CBUAE Insurance Authority (IA) licence with AED 100 million minimum paid-up capital.
- General insurance covers motor, property, marine, liability, engineering, travel, and other short-term lines under UAE Insurance Law No. 6 of 2007.
- UAE compulsory insurance mandates include third-party motor liability (Federal Law No. 21 of 1995), employer workmen’s compensation, and mandatory health insurance in Dubai and Abu Dhabi.
- Motor insurance is the largest general insurance segment at AED 8 billion gross written premiums, regulated by CBUAE IA Motor Insurance Unified Policy.
- General insurers must maintain a Solvency Capital Requirement (SCR) ratio above 150% and submit quarterly RBC returns to CBUAE IA.
Updated August 2026. The UAE general insurance market reached AED 30 billion in gross written premiums in 2025, making it one of the largest non-life markets in the GCC. Motor, health and property insurance together account for over 70% of market premiums. This guide provides the definitive step-by-step framework for launching a UAE general insurance company in 2026 — covering CBUAE Insurance Authority (IA) licensing, AED 100 million capital requirements, compulsory insurance product mandates, and UAE-specific compliance obligations including Emiratisation and RBC solvency.
General insurance (also termed “short-term insurance” or “Class II insurance” under UAE law) encompasses all non-life insurance lines with policy periods of one year or less. The regulatory authority for onshore UAE general insurers is the Central Bank of the UAE (CBUAE) Insurance Authority (IA), which assumed the functions of the former independent Insurance Authority following Cabinet Decision No. 42 of 2022. In the DIFC and ADGM free zones, general insurance is regulated by the DFSA and ADGM FSRA respectively under their own frameworks.
What Is a UAE General Insurance Company?
A UAE general insurance company is licensed to underwrite short-term (one year or less) risk transfer products across classes including: motor insurance (compulsory and comprehensive); property and fire insurance; marine cargo and hull; engineering and construction all-risk; aviation hull and liability; personal accident and travel; professional indemnity and directors’ and officers’ (D&O) liability; product liability; and miscellaneous accident lines. UAE Insurance Law No. 6 of 2007 (as amended by Federal Decree-Law No. 25 of 2020) requires separate licences for general and life insurance — a composite entity must ring-fence its funds and obtain separate IA approval for each class.
The UAE general insurance market is driven by three compulsory insurance mandates that create permanent baseline demand: mandatory third-party motor liability (all registered vehicles), mandatory workmen’s compensation (all employers), and mandatory health insurance for employees and residents in Dubai (Law No. 11 of 2013) and Abu Dhabi (Law No. 23 of 2005). These mandates generate approximately AED 12 billion per year in compelled premium volume, providing strong market entry economics for new general insurers.
CBUAE Insurance Authority Licensing Requirements
The CBUAE IA issues general insurance licences under Insurance Law No. 6 of 2007 through a five-stage process:
- Pre-application eligibility confirmation: Meet with the CBUAE IA Licensing Department to confirm proposed structure (subsidiary, branch, or composite), product lines and target market segments.
- Preliminary approval application: Submit corporate structure documentation, three-year business plan with premium and loss projections, risk management framework, draft reinsurance programme, organisational chart, and fit-and-proper assessments for all proposed directors, senior managers and the Chief Underwriting Officer.
- Capital verification: Deposit AED 100 million paid-up capital in a designated UAE bank account. An independent auditor must certify the capital adequacy to the CBUAE IA.
- Final licence application: Submit Articles of Association, shareholder register, product filings (all policy wordings, schedules, premium rating methodologies require pre-approval), core insurance system certification, and approved reinsurance treaties with A-rated reinsurers.
- Commercial licence issuance: Following IA approval, register with the relevant emirate’s Department of Economic Development (DED) or free zone authority. CBUAE IA approval is prerequisite — no DED will issue a Commercial Licence for insurance without it.
Minimum Capital: AED 100 Million and RBC Solvency
Cabinet Decision No. 42 of 2022 and CBUAE IA Circular No. 3 of 2023 established the AED 100 million (approximately USD 27.2 million) minimum paid-up capital for UAE general insurance companies. Key capital requirements include:
- Full payment at licence issuance: The AED 100 million must be fully paid before the final licence is issued. No staged capital injection is permitted.
- Statutory deposit: AED 5–10 million of capital is held in a ring-fenced bank account controlled by the CBUAE IA as a policyholder protection fund.
- Risk-Based Capital (RBC) framework: Under CBUAE Circular No. 7 of 2023, general insurers must calculate quarterly Solvency Capital Requirements (SCR) covering underwriting risk, reserve risk, market risk, credit risk, and operational risk. The minimum SCR Coverage Ratio is 150%, with a supervisory target of 180%.
- Technical provisions: General insurers must maintain IBNR (Incurred But Not Reported) reserves, Unearned Premium Reserves (UPR), and Loss Adjustment Expense reserves, all certified annually by the Chief Actuary.
UAE Compulsory Insurance Mandates: Motor, Health and Workers’ Compensation
The UAE’s three major compulsory insurance mandates create permanent market demand and regulatory obligations for general insurers:
Motor Third-Party Liability (TPL): Federal Law No. 21 of 1995 requires all registered vehicles in the UAE to carry minimum third-party liability cover. The CBUAE IA publishes the Unified Motor Insurance Policy, which defines mandatory minimum coverage: AED 250,000 per accident for bodily injury and AED 500,000 for death. General insurers wishing to underwrite motor TPL must obtain specific IA pre-approval and submit annual motor loss statistics to the IA’s Motor Insurance Database (MID). The motor market is AED 8 billion in annual premium and covers approximately 3.8 million registered vehicles.
Mandatory Health Insurance: Dubai’s Mandatory Health Insurance Law (Law No. 11 of 2013) requires all employers in Dubai and the free zones to provide DHA-approved health insurance to all employees and their dependents. Abu Dhabi has similar requirements under HAAD/DOH Law No. 23 of 2005. General insurers providing health insurance must obtain additional regulatory approval from the Dubai Health Authority (DHA) or the Department of Health Abu Dhabi (DOH), separate from the CBUAE IA general insurance licence. See our dedicated guide on UAE health insurance company setup.
Workmen’s Compensation: UAE Labour Law (Federal Decree-Law No. 33 of 2021) requires employers to provide workmen’s compensation insurance for all employees. Minimum coverage is defined by MOHRE guidelines and typically covers AED 18,000–200,000 per claim depending on injury severity and employee salary.
Key Lines of Business and Product Filing Requirements
General insurers must file all product wordings, schedules and premium rates with the CBUAE IA Product Filing Unit at least 60 days before market launch. The IA reviews pricing for actuarial adequacy, and all consumer-facing policy documents must be available in Arabic (Arabic version prevails in disputes). Key product categories and their UAE regulatory requirements include:
- Motor Insurance: Must comply with the Unified Motor Policy. Comprehensive premiums are market-rated but must demonstrate actuarial adequacy in annual filings.
- Property Insurance: No unified policy mandated. Commercial property covers require business interruption exposure modelling filed with the IA for large industrial risks.
- Marine Cargo: UAE is a major transshipment hub. Marine cargo policies must align with Institute Cargo Clauses (A, B, C) and Incoterms 2020.
- Professional Indemnity: CBUAE IA Circular No. 9 of 2024 mandates minimum PI cover for financial advisers (AED 2 million per claim) and healthcare professionals in Dubai/Abu Dhabi.
Comparison of UAE General Insurance Licensing Options
| Structure | Regulator | Min Capital | Motor TPL Eligible | Health Licence Needed? |
|---|---|---|---|---|
| Onshore General Insurer | CBUAE IA | AED 100M | Yes (with IA approval) | Yes (DHA/DOH) |
| DIFC General Insurer | DFSA | USD 10M | No (passporting required) | Via passporting |
| ADGM General Insurer | FSRA | USD 10M | No (passporting required) | Via passporting |
| Branch of Foreign General Insurer | CBUAE IA | AED 100M + AED 50M parent guarantee | Yes (with IA approval) | Yes (DHA/DOH) |
| General Takaful Operator | CBUAE IA | AED 100M | Yes (with IA approval) | Yes (DHA/DOH) |
Reinsurance, Emiratisation and Ongoing Compliance
UAE general insurers must reinsure at least 5% of gross premiums with A-rated international reinsurers under CBUAE IA Circular No. 6 of 2022. Catastrophic property risks (earthquake, flood, windstorm) must be reinsured to 1-in-200-year return period standards. Reinsurance treaties are filed annually with the CBUAE IA and must be executed before the policy year commencement.
Emiratisation under CBUAE Circular No. 11 of 2023 requires 40% UAE national staffing in executive and management roles (Level 3+ MOHRE classification) by 31 December 2026. Non-compliant general insurers pay AED 2,000 per month per vacant Emiratisation position. For general corporate formation requirements, see our UAE company formation requirements guide. Tax treatment of insurance premium income under the UAE Corporate Tax Law is discussed in our UAE corporate tax free zone guide. For jurisdiction selection, consult our UAE free zone comparison guide.
Frequently Asked Questions: UAE General Insurance Company
What is the minimum capital for a UAE general insurance company?
The minimum paid-up capital for a UAE onshore general insurance company is AED 100 million (approximately USD 27.2 million), as established by Cabinet Decision No. 42 of 2022 and CBUAE IA Circular No. 3 of 2023. The full amount must be paid at the time of final licence issuance and maintained at or above AED 100 million at all times. In addition, general insurers must maintain a Solvency Capital Requirement (SCR) Coverage Ratio of at least 150% under the CBUAE RBC framework introduced in 2023.
Can a UAE general insurance company underwrite all lines of business?
No. Each line of business must be specifically approved by the CBUAE IA as part of the licensing process. Product filings (policy wordings, premium rates and coverage terms) must be submitted to the IA at least 60 days before market launch. Health insurance in Dubai additionally requires DHA approval, and Abu Dhabi health insurance requires DOH approval. Motor third-party liability requires specific IA pre-approval to access the Motor Insurance Database (MID). Insurers wishing to underwrite aviation hull and liability must obtain separate specialist approval.
What compulsory insurance lines must a UAE general insurer offer?
UAE compulsory insurance lines that general insurers may underwrite (with appropriate IA approval) include: third-party motor liability under Federal Law No. 21 of 1995; mandatory health insurance in Dubai (Law No. 11 of 2013) and Abu Dhabi (Law No. 23 of 2005); workmen’s compensation under Federal Decree-Law No. 33 of 2021; professional indemnity for financial advisers (CBUAE IA Circular No. 9 of 2024); and domestic worker insurance. These mandates create AED 12+ billion in compulsory annual premium demand.
How are UAE motor insurance premiums regulated?
Motor third-party liability (TPL) premiums are regulated by the CBUAE IA, which sets minimum and in some cases maximum rate bands for compulsory TPL. Comprehensive motor premiums are market-rated by individual insurers but must demonstrate actuarial adequacy through annual product filings. The IA publishes the Unified Motor Insurance Policy (UMIP), which defines minimum coverage terms, exclusions and claims handling standards. Insurers must submit annual motor loss statistics to the CBUAE IA Motor Insurance Database (MID) for market monitoring purposes.
What are the Emiratisation and staffing requirements for general insurance companies in the UAE?
Under CBUAE Circular No. 11 of 2023, all onshore UAE general insurance companies must achieve 40% Emiratisation in executive and management roles (MOHRE Level 3+) by 31 December 2026. Companies must register Emirati employees in the CBUAE Emiratisation Portal within 30 days of joining and submit quarterly progress reports. Non-compliant companies pay AED 2,000 per month per unfilled Emiratisation position. The Chief Underwriting Officer and Chief Actuary must be IA-approved individuals; the Chief Actuary must be a Fellow of an internationally recognised actuarial body.