Knowing who regulates insurers, and what happens if one fails, helps a business choose carriers and handle complaints. The UK splits prudential and conduct regulation and backs policyholders through the FSCS, Germany's BaFin supervises insurers under the VAG, the UAE Central Bank regulates onshore insurance under a 2025 decree-law, and the US regulates insurance state by state.
Who supervises insurers
In the UK, the Prudential Regulation Authority sets prudential rules for and supervises insurers, alongside conduct regulation by the FCA. In Germany, BaFin supervises private insurers and any German-based insurer needs its authorisation. In the UAE, Federal Decree-Law No. 6 of 2025 brought central banking and insurance business under one law from 16 September 2025, and new insurance brokerage regulations took effect on 15 February 2025.
In the US, the McCarran-Ferguson Act leaves insurance regulation and taxation to the states. In India, 100% foreign investment in insurers is allowed under the automatic route subject to IRDAI approval, which shows IRDAI's gatekeeping role.1234567
If the insurer fails
The UK's Financial Services Compensation Scheme pays 100% of eligible claims under compulsory covers such as employers' liability and third-party motor, and 90% for most other general insurance including property and public liability. It does not protect credit, marine, aviation, goods in transit or reinsurance contracts, which matters for trade credit programmes and captives.8910
| Market | Regulator or law | Policyholder protection noted | Source |
|---|---|---|---|
| United Kingdom | PRA (prudential), FCA (conduct) | FSCS: 100% compulsory covers, 90% other general insurance | Bank of England; FSCS |
| Germany | BaFin under the VAG | Not researched | gesetze-im-internet.de |
| UAE (onshore) | Central Bank under Decree-Law 6/2025 | Not researched | CBUAE Rulebook |
| United States | State insurance regulators | Not researched | US Code |
| India | IRDAI | Not researched | Secondary source |
Decisions to make
- Is the insurer regulated in the country where the policy is issued?318Licensing determines both legality of placement and access to protection schemes.
- Would a failure of the insurer leave key covers unprotected?910FSCS excludes credit insurance and reinsurance and pays only 90% on many general covers.
- Which US state regulator is relevant?6Insurance rules and taxes are set by states, not federally.
Documents usually needed
- Regulator register extracts for each insurer and broker
- Insurer financial strength ratings and solvency reports
- Complaints and claims escalation procedures
- Broker terms of business
Common mistakes
- Choosing an insurer on price without checking its licence and financial strength
- Assuming compensation schemes protect every type of policy
- Overlooking UAE regulatory changes in 2025 when renewing onshore policies
Questions businesses ask
Is a UK employers' liability policy protected if the insurer fails?
Yes. FSCS protects 100% of eligible employers' liability claims where a PRA-regulated insurer fails.8
Who regulates insurance in the UAE?
Onshore, the Central Bank of the UAE under Federal Decree-Law No. 6 of 2025; the DIFC and ADGM have their own regulators.4
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- Saudi Arabia's Insurance Authority, Singapore's Policy Owners' Protection Scheme, Germany's insurance guarantee schemes and ombudsman, France's ACPR and US state guaranty associations could not yet be confirmed from official sources.
- UAE complaint and dispute bodies for insurance were not confirmed.
- IRDAI's own pages and the Insurance Ombudsman in India could not yet be checked; the IRDAI point is from a secondary source.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The Prudential Regulation Authority, part of the Bank of England, sets prudential rules for and supervises banks, building societies, credit unions, insurers and major investment firms. Around 1,292 firms. Conduct regulation is by the Financial Conduct Authority; the split between the two was not described on this page.
Reused from gb-banking-g04.
BaFin is the supervisory authority for private insurers based in Germany or with a branch there, or otherwise conducting insurance business in Germany. Section 320(1) VAG; some smaller public-law insurers are supervised by the federal states.
Insurers with their seat in Germany need authorisation from the supervisory authority to conduct business. Section 8(1) VAG.
Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business is in force, with an effective date of 16 September 2025. Federal; onshore UAE and non-financial free zones. DIFC and ADGM financial services are regulated by their own regulators.
Reused from ae-banking-g04.
The Central Bank of the UAE issued new insurance brokerage regulations in 2024, which took effect on 15 February 2025 and replaced the 2013 regulations. Onshore UAE.
Secondary government source describing UAE regulation.
Under the McCarran-Ferguson Act, the business of insurance and every person engaged in it are subject to the laws of the several states relating to its regulation or taxation. 15 U.S.C. 1012(a) (federal); insurance in the US is regulated state by state.
Unofficial reproduction of the US Code text.
Insurance companies may receive up to 100% foreign investment under the automatic route, subject to IRDAI approval and verification, and at least one of the chairperson, managing director or chief executive officer must be a resident Indian citizen. Excludes LIC (separately capped at 20%). Based on Press Note 1 (2026 Series) of 9 February 2026 and the FEMA (Non-debt Instruments) (Second Amendment) Rules, 2026 notified on 2 May 2026. Central rule.
Law-firm summary; the official Press Note and gazette notification could not yet be checked. The effective date is the notification date reported by the source. Reused from in-regulatory-002.
The UK Financial Services Compensation Scheme protects 100% of eligible claims under third-party motor and employers' liability insurance, and professional indemnity insurance where the insurer failed on or after 3 July 2015, if a PRA-regulated insurer fails. Subject to conditions and limits set by the Prudential Regulation Authority.
FSCS protects 90% of eligible claims under other general insurance, including property and public liability insurance, if the insurer fails. Subject to PRA conditions and limits; premium refunds are capped at 90%.
FSCS does not protect goods in transit, marine, aviation, credit insurance or reinsurance contracts. Relevant to trade credit cover and captive reinsurance arrangements.
Questions on this topic
10 statements on regulators and policyholder protection
