The Dawn of Saudi Arabia’s Insurance Authority
In a landmark decision spearheaded by Crown Prince Mohammed bin Salman, the Saudi Cabinet has given the nod to the creation of the Insurance Authority (IA) – a fresh, unified, and independent regulatory body for the nation’s insurance sector. This monumental shift is poised to materialize within the next 90 days, following the official announcement of the Cabinet resolution, eagerly awaited by industry stakeholders.
Historically, the dual responsibility of regulating and overseeing the insurance industry was shared between the Central Bank of Saudi Arabia (SAMA) and the Council of Health Insurance (CHI). These two will uphold their regulatory roles in a temporary capacity until the close of the 90-day transitional phase, post which all insurance-centric competencies will transition seamlessly to the IA.
The forthcoming transition encompasses notable changes, such as:
- Centralizing all regulatory measures for the insurance sector exclusively within the IA.
- Redirecting all communication avenues pertaining to regulation and compliance in the insurance realm to the IA.
Importantly, SAMA’s recent FAQs highlight that all existing legislation, guidelines, and procedures established by either SAMA or CHI will remain enforceable without change. This ensures that until new guidelines supersede, mechanisms like the Committee for Resolution of Insurance Disputes and Violations and the symbiotic rights and duties binding insurers, policyholders, and beneficiaries stay intact.
This visionary move by the Saudi Cabinet echoes the ambitious aspirations of the Kingdom’s Vision 2030 program. It reaffirms the pivotal role the insurance sector is envisioned to play in fostering the nation’s broader economic growth and transformational endeavours.
As these developments unfold, we remain committed to bringing you up-to-the-minute updates, especially once the Cabinet resolution graces the public domain.
