Saudi Arabia: SAMA issues bancassurance rules
Source: Middle East Insurance Review | Jun 2020
The Saudi Arabian Monetary Authority (SAMA) has issued a set of regulations governing bancassurance activities in the kingdom. The move is part of SAMA’s aspirations and efforts to develop the financial services environment, and align it with the latest technical developments in the insurance industry around the world.
The regulations, called Rules Governing Bancassurance Activities, aim to expand the scope of distribution and marketing of insurance products through banks and to regulate the relationship between insurers and banks.
The rules play a substantial role in raising demand for and awareness of saving products by promoting the distribution of insurance products in remote areas.
The rules spell out various requirements such as both the insurer and the bank shall sign an agreement before the bank starts bancassurance activities, as well as obtain SAMA’s prior approval before signing the agreement. M