The UAE’s insurance sector is undergoing a dramatic transformation, driven by the Central Bank of the UAE (CBUAE). The new Open Finance Framework now mandates insurers to securely expose policy-related data with consent from the customers. As digitalization reshapes financial services, open finance is set to unlock new opportunities for insurers – provided they can meet regulatory demands and leverage scalable integration solutions.
This regulation is more than a compliance mandate — it’s a strategic opportunity for insurers to modernize distribution, digitize services, and engage new customer segments through secure, API-enabled connectivity. At the core of this transition lies the role of CBUAE-licensed Open Finance Integrators (OFIs) and Third-Party Providers (TPPs) who serve as critical enablers for regulated insurers.
Lines of Business in Current Scope (As of June 2025)
The Open Finance framework currently applies to the following insurance segments
The CBUAE’s Open Finance Regulation, effective from April 2024, establishes a comprehensive framework for the licensing, supervision, and operation of open finance in the UAE. This framework is not limited to banking; it explicitly covers insurance companies and brokers, mandating their participation in the open finance ecosystem.
All licensed insurers and brokers must securely expose regulated insurance data via APIs – including policy data, quote initiation, and payment instructions subject to user consent and regulatory guidelines.
The rollout begins with insurance companies on a tier-based plan (including foreign branches), with additional entities to be onboard in subsequent phases.
Participants must meet stringent governance, control, capital, and insurance requirements, including holding professional indemnity insurance.
Data sharing and transaction initiation require explicit user consent and robust security measures.
New rules now require direct payments to insurers and faster, more transparent claim settlements, bypassing brokers for premium collection and settlements.
Participation in the Open Finance Framework is mandatory for all UAE insurers with respect to the Products and Services within its scope. This means your insurance company must ensure their systems can meet Open Finance obligations, including:
Regulated APIs
Insurers need to expose certain customer data via secure, consented APIs and provide response to Quote requests as per CBUAE specifications.
Consent Management
Capturing, storing, and managing granular customer consent becomes mission-critical.
Audit and Traceability
Full visibility into who accessed what, when, and how is essential for trust and compliance.
TPP Onboarding
Integrating with licensed Third-Party Providers (TPPs) without introducing security or governance risks.
A phased implementation approach gives you time to prepare, but early movers will gain significant competitive advantages.
Under the Open Finance Regulation, insurance companies are mandated to enable secure, consent-based sharing of customer data and services for financial products across platforms via APIs. This mandatory participation represents both a compliance obligation and a competitive opportunity. For insurers, this means:
Seamless Integration
Insurers must integrate their systems with the open finance API hub, allowing third-party providers such as fintech and aggregators to access policy, claims, and payment data (with customer consent).
Enhanced Customer Experience
Customers gain more control and visibility over their insurance products, can compare offerings, and initiate quote-based purchases and payments digitally and instantly.
Innovation and Competition
Open access encourages the development of new, customer-centric insurance products and services, driving innovation and market competition
Opportunities beyond normal Channels
By providing Quotes on demand via the API Hub, enabled through the TPPs, the Insurers (LFIs) are exposed to a plethora of opportunities to tap potential customer bases across service providers.
Open Finance Framework has ushered in an era of radical digital transformation for insurers. While the primary directive is compliance, forward-looking insurers can leverage Open Finance to drive growth, embed their services across new digital ecosystems, and build trust in a data-driven economy.
By embracing partnerships with Third-Party Providers (TPPs) and Open Finance Integrators (OFIs), insurers can fundamentally transform how their products are distributed, consumed, and serviced.
CBUAE’s open API architecture allows insurers to connect with a wide range of digital partners—banks, e-Wallets, HR systems, health-techs, lifestyle platforms, and travel portals—exposing their insurance products beyond traditional distribution. This creates access to new customer segments, especially millennials and Gen Z users who expect embedded digital experiences. For expanding services, Insurers can
Embedded insurance allows customers to buy coverage at the point of relevance—within a travel booking, during a ride-hailing app transaction, or while completing a digital health checkup. The insurer’s offering can become part of a native digital experience, driving both relevance and conversions with steps:
Trust is a strategic asset in the Open Finance economy. Insurers that empower customers with consent visibility and data transparency will earn long-term loyalty through steps like:
Insurers can now digitize their full lifecycle—from quote to claim—through Open Finance APIs. This reduces turnaround time, increases customer satisfaction, and unlocks service automation across channels. Key actions to achieve this:
Insurers can now digitize their full lifecycle—from quote to claim—through Open Finance APIs. This reduces turnaround time, increases customer satisfaction, and unlocks service automation across channels. Key actions to achieve this:
The technical complexity of UAE’s Open Finance Framework demands expertise that goes beyond traditional insurance IT capabilities. Here’s why partnering with a specialized integrator is crucial. A scalable integrator – such as a plug and play middleware platform acts as a bridge between insurers, third-party providers, and the open finance infrastructure with zero disruption to the existing insurance core system. Their benefits include:
Integrators offer modular, plug-and-play solutions that help insurers quickly meet regulatory requirements for API connectivity, data security, and consent management.
By centralizing integration, insurers avoid costly and complex in-house development, freeing resources for product innovation and customer service.
Integrators enable insurers to offer their products on new digital channels, reach untapped customer segments, and create embedded insurance offerings within partner ecosystems generating new revenue streams.
With real-time data access and transaction capabilities, insurers can deliver personalized products, faster claims, and seamless digital experiences, boosting customer satisfaction and retention.
The UAE’s Open Finance Regulation is a catalyst for growth and innovation in the UAE insurance sector. Companies that view this as a strategic opportunity rather than a compliance burden will emerge as market leaders.
Partnering with a proven, CBUAE-certified OFI Integrator such as NSure OFI empowers insurers to:
By embracing scalable integrators like NSure OFI – insurers not only ensure compliance but also unlock new ways to serve customers and drive revenue in a rapidly evolving digital landscape. With the right integration partner, your insurance company can turn regulatory compliance into competitive advantage, creating new revenue streams while delivering superior customer experiences.
