The Saudi Insurance Authority will launch a more open approach towards data, in parallel with the implementation of the Risk-Based Capital (RBC) system, which would begin in January 2027. These moves will position the Saudi insurance industry for a new phase of growth and investment.
The CEO of the Saudi Insurance Authority, Engineer Naji Al-Faisal Al-Tamimi, said this at a recent conference. He also said that the Authority would begin implementing the RBC system next January. The first year of implementation is planned to be a trial phase, allowing the Authority and insurance companies to test the system and learn from its results before moving to full implementation, according to local media reports.
Data
He also said that the development of the insurance industry data infrastructure would be through the Cooperative Data Centre. The Centre is to provide the market with data, statistics and analyses that would help insurance companies and investors.
He explained that the availability of the necessary statistics and information to assess risks can reduce the time required to understand the market, while simultaneously adhering to governance frameworks, privacy protection, and competition requirements.
An investor can use the data before making a decision to enter the insurance market. The available data can also help companies develop insurance products and solutions that are more relevant to market needs, by understanding customer behaviour, demand trends and risk levels more accurately.
Mr Al-Tamimi added that the Authority does not want the use of data to be limited to the purposes of supervision and control. Rather, the regulator seeks to make data available to innovation, investors and the sector, to support the development of new products and solutions.
RBC
The new RBC framework empowers insurance companies to make more flexible decisions while maintaining capital levels commensurate with the nature and scale of the risks they face. This enhances confidence in the sector by demonstrating the ability of insurance companies to effectively manage risks and fulfil their financial responsibilities to investors and policyholders. Furthermore, the flexibility offered by this framework contributes to diversifying insurance companies' investments, thereby supporting economic activity within the financial sector.
The new framework also allows for the strengthening of capital through the issuance of subordinated debt instruments, which provides insurers with additional options to meet capital requirements in line with the growth of their businesses, and also contributes to enhancing investor participation in the insurance sector.
According to Mr Al-Tamimi, the Insurance Authority’s mission goes beyond the traditional regulatory role, as it includes developing and enabling the market, in addition to providing solutions and infrastructure that support insurance companies and investors. These moves are part of the National Insurance Strategy unveiled in January 2026. They are part of a broader trend by the Insurance Authority towards combining its regulatory role with market development and empowering its various stakeholders.