Regulatory Alert: Escrow Accounts Mandated for
Insurance Agents & Brokers, &
TPAs, UAE
The United Arab Emirates Central Bank (CBUAE) have issued Notice
No. CBUAE/BSD/2022/4708, dated 22 November 2022 in respect of
“Activating the Requirements of Escrow Account for
Funds & Premiums of Insurance Companies” (the
“Notice”).
What does this mean in real terms for the industry.
All UAE licensed and authorized insurance brokers, agents and
Health Insurance Third Party Administrators must open a dedicated
Escrow account with UAE licensed and authorized banks to hold
insurance monies (Client Funds) and enter into separate escrow
agreements with each of its insurer clients.
Escrow is defined as “a bond, deed, or other document kept
in the custody of a third party and taking effect only when a
specified condition has been fulfilled. In terms of an
“Escrow Account”, this is a form of a segregated
account opened by a third party (the escrow agent) for the purposes
of
