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UAE insurers face September deadline to overhaul motor claims processes
Insurers and claims service providers must review governance, data handling, outsourcing and AI processes ahead of the September 2026 reconciliation deadline
- PUBLISHED: Tue 4 Aug 2026, 10:52 AM UPDATED: Tue 4 Aug 2026, 10:54 AM
UAE insurers and motor claims service providers should review their claims-handling processes ahead of a September 2026 compliance deadline under the Central Bank’s consolidated supervisory framework, according to an analysis by Al Tamimi & Company and Axxion Claims Settlement Services.
The two firms said the requirements could affect everyday claims decisions, including how repair estimates, rejection letters, supporting evidence and file closures are documented.
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Federal Decree-Law No. 6 of 2025 came into force in September 2025 and brought banking, financial institutions and insurance activities under a single supervisory framework.
According to the firms’ analysis, Article 184 gives entities and individuals covered by the law one year to reconcile their positions with its provisions, although the Central Bank’s board retains discretion to extend the period.
Real-time claims records
Al Tamimi and Axxion said the framework requires claims records to be created and maintained in real time, so that decisions, evidence and timelines are documented as events occur.
They said the approach could also support underwriting, fraud detection and stronger data quality across the insurance sector.
Anand Singh, Legal Director and Head of Insurance for the GCC at Al Tamimi & Company, said the framework followed the direction of international insurance supervision.
He added that companies which had conducted gap assessments and started remediation work would be better placed to demonstrate progress.
The firms also noted that the framework contains 21 administrative sanctions, including fines of up to Dh1 billion for licensed financial institutions and Dh5 million for authorised individuals.
Responsibility for third parties
Singh said insurers remain accountable for functions placed with third parties, including due diligence, service standards, data flows and audit trails.
However, he said the appointment of a loss adjuster licensed by the Central Bank falls outside the outsourcing provisions, while the use of an unlicensed third party falls within them.
“Understanding where those distinctions apply is essential,” he said.
The analysis also said the framework brings insurance-related professions, including third-party administrators and loss adjusters, within the licensing perimeter and applies data and disclosure obligations to them.
AI and data requirements
Al Tamimi and Axxion said the claims process must also be considered alongside three other legal and regulatory instruments.
These include the new Civil Code, the UAE’s personal data protection law and the Central Bank’s February 2026 guidance on the responsible use of artificial intelligence and machine learning.
According to the firms, claimants may have rights to access personal information contained in their claims files, including information supporting a claims decision.
They also said automated steps used in decision-making should be transparent, explainable and subject to effective human oversight.
Frederik Bisbjerg, Managing Director and Co-founder of Axxion, said the requirements would be tested in routine decisions made during the claims process.
“A rejection has to connect to the peril that caused the loss, the file behind it has to be disclosable to the person it describes, and any automated step in the decision has to be explainable,” he said.
He added that insurers should approach the overlapping requirements as one operational programme rather than four separate compliance projects.
