Insurance Regulations
An insurance company must be established as a joint stock company. SAMA is the regulatory authority for insurance companies operating in Saudi Arabia. The key legislation governing licensed insurance and reinsurance service providers is the Law on Supervision of Cooperative Insurance Companies and its implementing regulations. SAMA has wide powers over insurance companies, for example:
- it approves board members and senior managers;
- its approval is also required for mergers and takeovers involving insurance companies;
- investments must comply with an approved investment policy;
- it sets minimum and maximum limits of cover and premiums; and
- it must consent in writing prior to an insurance company dealing with insurance brokers or foreign companies to cover risks that cannot be covered by a company in Saudi Arabia.