News Middle East25 Jan 2021

Saudi Arabia:Central bank affirms efforts to develop insurance sector

| 25 Jan 2021

The Central Bank of Saudi Arabia (SAMA) says that it continues to work on a number of development initiatives and structural reforms in order to develop the insurance sector and for the sector to achieve alignment with the Kingdom's "Vision 2030" goals.

SAMA told Al-Eqtisadiah, that the measures it is working on are aimed at increasing the insurance sector’s contribution to GDP, stimulating savings among individuals, as well as creating new job opportunities for citizens and raising their professional and technical skills.

The regulator says that it is working with other relevant authorities to overcome challenges to increase coverage of health insurance, vehicle insurance, and other types of insurance. It added, "Among the mechanisms that the Central Bank has worked on to develop the insurance sector and protect the rights of the insured and the beneficiaries of insurance coverage from any illegal practices is the adoption of many procedures, controls, rules and instructions necessary to organise and develop the sector, including, for example, supervision of actuarial business related to insurance.”

Several recent regulations that SAMA has issued include comprehensive insurance rules on online insurance brokerage business and bancassurance.

The Central Bank affirms its efforts to ensure fairness and efficiency of insurance pricing, as updating the unified policy for compulsory vehicle insurance. Insurance companies are obligated to grant discounts of up to 60% to vehicle owners with clean traffic records.

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