Statement made by the Saudi insurance sector’s spokesperson on Cabinet’s decision to establish the Insurance Authority
Riyadh, August 20.2023
Adel Al-Eisa, Media Spokesman for Insurance Companies, said: “The Cabinet’s decision to establish the Insurance Authority underlines the Kingdom’s commitment to building and developing a worldclass insurance sector — one set apart by established best practices and international standards. The launch of the Authority marks the latest step taken by the Kingdom to regulate, supervise, control, support and enhance the Saudi insurance sector, enhancing its effectiveness. The independent entity will help to raise greater awareness of the importance — and value — of quality insurance products, services and solutions; in addition to protecting the rights of policyholders and beneficiaries, ensuring the stability of the insurance sector, strengthening financial stability, and solidifying contractual relationship principles.”
He added: “We thank and commend the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman for their gracious approval to establish the Insurance Authority. This represents an exciting chapter for the Kingdom as a whole, with the creation of the new innovative entity SAMA’s ongoing efforts and the work of the Council of Health Insurance to regulate the nation’s fast-evolving insurance sector.”
Al-Eisa continued: “Crucially, the establishment of the Insurance Authority is in line with the Kingdom’s Vision 2030 objectives. It will help to accomplish the objective of increasing the Saudi insurance sector’s contribution to the Gross Domestic Product (GDP); doing so by enhancing the capacity of local insurance companies. Accordingly, homegrown and Saudi-based insurance firms will be empowered to retain a larger share of risks within the domestic market. Additionally, the sector will benefit from the Insurance Authority’s focus on fostering and upskilling national talent, increasing localization rates, forging impactful partnerships, facilitating mergers, attracting investors and enabling entities to expand new services, such as savings products. This Authority will also create an affirming environment conducive to bolstering regional and global cooperation and integration with regulatory bodies.”
Al-Eisa concluded: “The Insurance Authority will cooperate with relevant entities, such as the Saudi Central Bank and the Council of Health Insurance, to ensure the continuity of the sector’s operations, manage the transitional phase and create an optimal regulatory environment through regulations, decisions and systems that serve the best interests of entities operating within the sector and the beneficiaries of their services.”
