Saudi Arabia Financial Services New Insurance Regulatory Body Launched

In August 2023, the Saudi Cabinet approved the establishment of a new unified, independent regulator for the insurance sector, the Insurance Authority. The Authority will regulate the insurance sector to promote efficiency and stability in alignment with Vision 2030 goals. Among its objectives, the Authority will regulate and supervise the Kingdom’s insurance sector, protect the rights of policyholders and beneficiaries, establish principles of contractual insurance relationships, foster innovation in insurance products, raise insurance awareness, and draft the National Strategy for the Insurance Sector.

The Insurance Authority began operation on November 23, 2023, and will take over insurance-related responsibilities previously held by the Saudi Arabia Central Bank’s (also known as “SAMA”) and the Saudi Council of Health Insurance (CHI). It is a public agency with financial and administrative independence, reporting to the Prime Minister.

In February 2023, SAMA announced the licensing of a US-owned global health insurance company, the first health insurance company branch in Saudi Arabia. This significant milestone for the insurance sector creates opportunities for U.S. insurance companies to open branches of U.S. insurance companies providing insurance services in Saudi Arabia. U.S. insurance companies who have a strong reputation for innovative products and services, transparency, and high-quality customer service, will make them competitive in the Saudi market. 
 
For more information, please contact Khalid Khan, Commercial Specialist at Khalid.Khan@trade.gov