Composite insurance companies operating in the United Arab Emirates (UAE) have been given a further year, starting from 28 August 2015, to separate their life and non-life businesses.
Pursuant to the UAE Insurance Law1, UAE insurers are not permitted to carry on both life and non-life business. Composite insurers were originally required to separate their life and non-life insurance businesses within five years from 2007. However, this deadline was subsequently extended to 28 August 20152. The recently issued Cabinet Resolution No. (28) of 20153 grants a further extension of this deadline to 28 August 2016.
We understand that there are currently 13 composite insurers in the UAE (from a total of around 60 insurers registered in the UAE). Therefore, these composite insurers will need to consider the scale of their life and non-life insurance operations and possibly transfer an aspect of these operations to other insurers.