In compliance with the latest regulations issued by the Central Bank of the UAE (CBUAE) under Article 7.1, Circular No. 1/2024, Date 1/4/2024, effective 15th Feb 2025, all insurance premiums must be paid directly to the insurance company. This is to enhance transparency and efficiency within the insurance sector.
Key Changes:
Insurance Brokers are prohibited from collecting Premiums under any circumstances (Article 7.1)
Effective from 1st January 2025.
1. All invoices booked in 2025 must be paid directly to the insurance company only.
2. The credit facility previously extended by Omega will be discontinued. Going forward,
Premiums must be paid in accordance with the insurance company’s agreed credit terms.
(However we will make every effort to negotiate the same credit terms with the insurance
Company, though the final decision will ultimately depend on their approval)
3. All individual and retail policies will require payments to be made via a payment link.
4. All fleet policies and other general policies will required upfront PDC’s before issuing the
Policies, as per the agreed credit terms.
5. To provide credit terms, the insurance company’s finance team will check your AECB credit
Score to decide the credit terms.
6. Dealing in cash in any matter related to Insurance Brokerage going forward will be prohibited.
7. Premium refunds and Claim Settlement resulting from all types of insurance business will be paid directly by Insurance Companies to the policy holders.
Operational Conduct:
1. Insurance brokers are expressly prohibited from offering discounts to clients. Any discounts
Offered to clients must come directly from the insurance company.
2. A Broker of Record (BOR) from client is mandatory for all brokerage operations.
AML / CFT Compliance:
1. Brokers must implement effective measures to mitigate money laundering and terrorism
Financing risks, aligned with FATF standards.
2. KYC and due diligence processes are compulsory for all clients.
We greatly appreciate your understanding and continued support during this transition.
Should you have any questions or need further clarification, please do not hesitate to reach out to us.
Thank you for your cooperation.
Sincerely,
Omega Insurance Brokers LLC.
