SAMA’S Insurtech Rules: Saudi Arabia’s Strategic Leap into Insurtech Governance
- May 10, 2024
- Posted by: info
- Category: Blog
On July 30, 2023, in Riyadh, the Saudi Central Bank (SAMA) officially approved the Insurtech Rules following a period of public consultation facilitated through the National Competitiveness Center’s Public Consultation Platform. This milestone marks SAMA’s ongoing commitment to advancing the insurance sector, aligning services with industry advancements, especially in insurance technology. Saudi Arabia has taken significant steps to shape the future of its burgeoning insurtech sector by establishing a comprehensive regulatory framework. Approved by the Saudi Arabian Monetary Agency (SAMA), these insurtech rules serve as guiding principles for technology-driven insurance businesses in the country. The regulations, aimed at insurtech obligations, data accuracy, and client rights preservation, mark a strategic move towards capitalizing on Saudi Arabia’s growing insurtech marketplace.
The Insurtech Rules represent a comprehensive framework governing the operations and activities within the insurance technology sector. They are designed to safeguard clients, foster equitable competition, and promote stability and growth within the industry. These rules aim to provide Insurtech companies with a flexible regulatory environment conducive to innovation. Key components include practitioners’ responsibilities, accurate client information, codes of conduct ensuring client rights, and robust compliance and control measures.
In a promising sign for the sector, SAMA’s report highlighted significant growth in insurance premiums, reaching 53.4 billion riyal (US$14.2 billion) in the previous year. Moreover, the increasing adoption of online sales channels by insurance companies and aggregators reflects the evolving landscape driven by insurance technology.
Furthermore, Saudi Arabia is in the process of establishing an insurance authority to oversee and enforce the new regulatory framework. This initiative underscores the country’s commitment to leveraging the insurance sector as a vital component of its national economy. SAMA Governor Ayman Al-Sayari emphasized the importance of robust risk management systems, with the aim of fostering sector stability while safeguarding the interests of beneficiaries and policyholders.