A unified regulator for the insurance sector, independent of the Saudi Central Bank (SAMA), will be announced soon, Minister of Finance Mohammed Al-Jadaan stated on Wednesday.
While the minister acknowledged that the insurance sector needs powerful entities capable of expanding within and outside Saudi Arabia, he stressed that the government is keen on supporting and developing the financial sector.
Al-Jadaan pointed out that great investment opportunities are available in Saudi Arabia’s insurance sector.
The government, according to Al-Jadaan, is working on attracting quality investments from inside and outside Saudi Arabia.
Al-Jadaan invited international insurance companies to enter the Saudi market directly by opening branches or participating with investors.
Speaking about the anticipated unified regulator, Al-Jadaan said: “The objective is to develop the sector as well as to facilitate compliance processes between existing regulators.”
During the Saudi Insurance Symposium held on Wednesday, Al-Jadaan stressed that the insurance sector hasn’t quite yet reached the level of the Kingdom’s ambitions for it.
The minister also highlighted the importance of mergers to strengthen the sector.
He announced ongoing efforts to push the sector toward further growth during the coming period.
Al-Jadaan added the government initially approved a proposal to establish an independent insurance regulator.
SAMA Governor Fahad Abdullah Al-Mubarak confirmed that the insurance sector in the Kingdom achieved a growth of 8.5 %, recording an upward performance in 2021.
According to Al-Mubarak, SAMA is working on developing standards in the preparation of financial reports and has cooperated with companies to develop a clear transformation plan to implement the new standard.
Al-Mubarak explained that the Saudi insurance sector is recently going through stages of growth, maturity, and development, the most prominent of which are mergers and acquisitions between insurance companies and capital increase.
There is a tendency among several companies to raise their capital due to the expansion of business and high growth rates, which enhances the capacity, positions and solvency of companies, the Governor noted.
