Entire Section

  • GEN 2.19 GEN 2.19 Insurance intermediation

    • GEN 2.19.1 GEN 2.19.1

      (1) In GEN Rule 2.2.2 Insurance Intermediation means:
      (a) advising on a Contract of Insurance;
      (b) acting as agent for another Person in relation to the buying or selling of a Contract of Insurance for that other Person;
      (c) making arrangements with a view to another Person, whether as principal or agent, buying a Contract of Insurance; or
      (d) operating an Insurance Aggregation Site.
      (2) In (1)(a), 'advising' means giving advice to a Person in his capacity as a Policyholder, or in his capacity as agent for a Policyholder on the merits of his entering into a Contract of Insurance whether as principal or agent.
      (3) In (2), 'advice' includes a statement, opinion or report:
      (a) where the intention is to influence a Person, in making a decision, to select a Contract of Insurance or insurance cover; or
      (b) which could reasonably be regarded as being intended to have such influence.
      (4) The arrangements in (1)(c) include arrangements which do not bring about the transaction.
      (5) The arrangements in (1)(c) do not include the mere provision of information about:
      (a) a Contract of Insurance, insurer, insurance intermediary or insurance manager to a Policyholder; or
      (b) a Policyholder to an insurer, insurance intermediary or insurance manager,
      if the Person providing that information does not take any further steps to assist in concluding the Contract of Insurance.

      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] [VER6/12-05]
      [Amended] [VER10/06-06]
      [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
      [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 2.19.1 Guidance

        1. Insurance Intermediation activities may be carried on by an Insurance Agent (i.e. a Person who acts as an agent of one or more insurers) or an Insurance Broker (i.e. a Person who acts as an agent of a policyholder), or by an Insurer itself, in relation to its own Contracts of Insurance. Generally, most activities of an Insurance Agent can be carried on by an Insurance Manager that has the authority to underwrite Contracts of Insurance in the DIFC.
        2. For more information about Insurance Aggregation Sites, see Guidance items 2 to 4 under GEN Rule 2.11.1.
        3. See the Guidance under Arranging Deals in Investments in GEN section 2.9 for the distinction between the activities of 'acting as agent' and 'arranging'.
        4. A Person 'acting as agent' as set out in GEN Rule 2.19.1(1)(b) for an Insurer effecting or carrying out contracts of Long-Term Insurance will need to hold an Insurance Intermediation or Insurance Management Licence.
        5. If an Insurance Intermediary wishes to carry on Insurance Intermediation activities in respect of a contract of Long-Term Insurance, that is not a contract of reinsurance, it must obtain an endorsement on its Licence (see GEN Rule 2.2.10C).
        6. See also Guidance item 2 under GEN Rule 2.9.1 for examples of activities that constitute arranging.
        [Added] [VER10/06-06]
        [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER23/08-09]
        [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
        [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • Exclusions

      • GEN 2.19.2

        A Person (an 'arranger'), does not carry on the activity of Insurance Intermediation specified in GEN Rule 2.19.1(1) if that Person enters, or is to enter, into a transaction in respect of a Contract of Insurance as principal. This exclusion does not apply in the case of a branch which makes arrangements for its head office, or any other branch of the same legal entity as itself, to enter into a transaction as provided under GEN Rule 2.19.1(1).


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04] [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 2.19.3

        A Person does not carry on Insurance Intermediation if the activity:

        (a) is carried on in the course of any professional business which does not otherwise consist of the carrying on of Financial Services;
        (b) may reasonably be regarded as a necessary part of any other services provided in the course of that professional business; and
        (c) is not remunerated separately from the other services; and
        (d) does not assist in the conclusion or performance of a Contract of Insurance.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended][VER6/12-05]
        [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]

      • GEN 2.19.3A GEN 2.19.3A

        A Person does not carry on an Insurance Intermediation activity if:

        (a) the activity is carried on in the course of a business of providing goods or services (other than Financial Services);
        (b) providing goods or services referred to in (a) is the principal business of that Person; and
        (c) the activity:
        (i) can reasonably be regarded as being ancillary and complementary to the principal business of that Person; and
        (ii) does not relate to a contract of Long-Term Insurance.

        Derived from DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]

        • GEN 2.19.3A Guidance

          1. The exclusions in GEN Rules 2.19.3 and 2.19.3A apply to certain Insurance Intermediation activities which occur in the course of carrying on other businesses.
          2. GEN Rule 2.19.3 applies to activities carried on as a necessary part of a professional service, such as insurance advice provided by an accountant or solicitor as part of estate planning or tax advice.
          3. GEN Rule 2.19.3A applies to activities that are ancillary and complementary to a business of providing goods or services. This might include, for example, a travel agent arranging travel insurance or a supplier of electrical goods arranging insurance of those goods. It does not apply if the main service or good is not provided to the customer, for example, if a travel agent does not provide the main travel service to the customer.

          Derived from DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]

      • GEN 2.19.4

        A Person does not give advice in relation to a Contract of Insurance by giving advice in any newspaper, journal, magazine, broadcast service or similar service in any medium if the principal purpose of the publication or service, taken as a whole, is neither:

        (a) that of giving advice of the kind mentioned in GEN Rule 2.19.1; nor
        (b) that of leading or enabling Persons to buy types of insurance.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]

      • GEN 2.19.5

        A Person does not arrange a Contract of Insurance merely by providing the means by which one party to a transaction is able to communicate with other such parties.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]

      • GEN 2.19.6

        A Person who is an Authorised Firm does not advise in relation to a Contract of Insurance if it is authorised under its Licence to carry on the Financial Service of Advising on Financial Products, to the extent the advice relates to a contract of Long-Term Insurance, that is not a contract of reinsurance.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 2.19.7

        A Person who is an Authorised Firm does not arrange a Contract of Insurance if it is authorised under its Licence to carry on the Financial Service of Arranging Deals in Investments, to the extent that the arranging relates to rights under a contract of Long-Term Insurance, that is not a contract of reinsurance.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 2.19.8

        An Insurance Manager does not carry on Insurance Intermediation to the extent that it carries on an activity that constitutes Insurance Management.


        Derived from DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]

      • GEN 2.19.9

        A Person does not carry on Insurance Intermediation by reason only of providing either or both of the following services:

        (a) an insurance loss adjustment service; or
        (b) the expert appraisal of insurance claims.

        Derived from DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]