The Saudi government has granted both the Minister of Finance and the Chairman of the Board of Directors of the Insurance Authority the power to set the appropriate mechanisms to invest the funds of the new entity.
Earlier this month, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved the establishment of the Insurance Authority, within an endeavor to foster robust and competitive insurance entities within the Kingdom.
Finance Minister Mohammed Al-Jadaan described this measure as pivotal within the developmental blueprint of the financial sector, a component of the Vision 2030 program designed to boost the role of the insurance sector in the Kingdom.
According to information made available to Asharq Al-Awsat, the Council of Ministers decided to form a committee that includes representatives from the Central Bank and the ministries of finance, human resources, social development and health, as well as the Financial Sector Development Program (FSDP) and the Council of Health Insurance.
The committee is concerned with transferring properties, documents, financial allocations and initiatives related to the insurance sector from the Central Bank to the new body.
The Saudi Cabinet has called on the Health Insurance Council, when studying its draft organization, to take into account that its roles include implementing compulsory health insurance, identifying those covered by compulsory coverage, approving and qualifying health service providers, and operating the Nphies platform.
The Insurance Authority shall coordinate with the Central Bank when exercising the powers and tasks stipulated in its organization and the regulations related to the insurance sector, which have an impact on the monetary conditions and the stability of the financial sector.
The establishment of an independent unified entity concerned with regulating insurance in the Kingdom is expected to enhance the efficiency of this sector, raise its contribution to the non-oil domestic product, and keep pace with developments in the insurance industry around the world.
The Authority will complete the process of the Saudi Central Bank in developing the insurance sector, by providing the appropriate environment to create strong entities capable of competition and growth, supporting the stability of the insurance sector in particular, and the national economy in general, and protecting the interests of beneficiaries and policyholders.
