The Insurance Authority is the regulator of the insurance sector in the Kingdom of Saudi Arabia. It is an administratively and financially autonomous government entity. It is organizationally linked to the Prime Minister. It was established in 2023. It aims to regulate the insurance sector, supervise it, enhance its effectiveness, and foster its financial autonomy. It also seeks to instill the principles of the insurance contractual relationship, protect the rights of beneficiaries and insured persons, and enhance risk management in the sector.
Establishment of the Insurance Authority
The Insurance Authority was established by the resolution of the Council of Ministers issued on August 15, 2023. On November 23, 2023, the Insurance Authority officially started its work after its established resolution issued by the Council of Ministers entered into force.
On March 4, 2024, the Insurance Authority announced the transfer of the health insurance mandate from the Council of Health Insurance to the authority, in its capacity as the sole authority responsible for regulating, supervising, and monitoring the insurance sector in the Kingdom. On March 27, 2024, a Royal Order appointed the members of the Insurance Authority's Board of Directors among those competent and experienced in the authority's field of work. The appointment was made after a Royal Order, issued on October 4, 2023, appointed the Chairman of the Board of Directors of the Authority.
Mandate of the Insurance Authority
The mandate of the Insurance Authority covers the competencies related to the insurance sector and its regulation in the Kingdom. It seeks to achieve the objectives of its establishment as the sole authority responsible for regulating, supervising, and monitoring the insurance sector in the Kingdom.
The authority operates in line with future plans for establishing a promising and sustainable sector according to international standards. It seeks to provide insurance protection for the residents of the Kingdom, create an attractive environment for local and foreign investments, and enhance the insurance field's competitiveness, ultimately improving the offered services and fostering insurance products' diversity.
The establishment of the authority represents a significant step under the Financial Sector Development Program, one of Saudi Vision 2030 programs. In fact, it instills a key pillar for supporting the national non-oil economy. It contributes to job creation, encourages investment, and offers a conducive environment for competitive insurance entities in the Kingdom.
Awards held by the Insurance Authority
On June 11, 2024, the Insurance Authority received the ISO 9001:2015 qualification for Quality Management Systems in the field of providing insurance companies with licensing and approval services regarding insurance technology, appointments, attributions, products, and reinsurance agreements. This achievement fell within the framework of the authority's keenness to enhance the application of the management ecosystem's standards and requirements and conduct a thorough review of the quality management system for licensing and approvals and the work processes mechanisms applied by the authority's General Department of Licensing and Approvals.
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