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CBUAE Suspension of Foreign Insurers and Its Impact
December 22, 2025
9:27 AM
CBUAE Implementation of Sanctions on Foreign Insurers And Its Effect
Compliance Issues & Violations
Quite recently, the Central Bank of the UAE (CBUAE) made headlines by stopping the motor insurance business of a foreign insurance company due to fears of compliance and violations. This decision has rocked the insurance sector and filled with anxiety among drivers in the UAE.
Insurance firms from abroad doing business in the UAE are expected to be in compliance with the very rigorous law of the CBUAE to ensure the safety of the policyholders and the insurance market itself. Non-compliance may lead to dire consequences, such as the possibility of business operation suspension.
Claim Risk for Drivers
When the motor insurance business of a foreign insurer is stopped, drivers in the UAE may have to deal with possible claim risks. For instance, in case of an accident or damage caused to their vehicles, the policyholders may face significant difficulties in their claim processing as well as the receiving of compensation due to the suspension of the insurer.
It is of utmost importance that vehicle drivers go through their motor insurance policies and check whether they are with a good, trustworthy, and compliant insurance provider. By going with the right firm that has a long history of excellent customer service and a reliable track record of claims processing, drivers can secure their money from a sudden loss.
“Drivers in the UAE should know the significance of the CBUAE’s abroad insurance company sanctions and must take positive measures to protect themselves by choosing a reputable insurance provider.” – Insurance Expert
