§  The role of the insurance sector is to be a cornerstone of the Saudi financial services sector by providing reliable risk transfer mechanisms, promoting long-term savings, and serving as a conduit to channel funds from policyholders to investment opportunities, thus being a key enabler of a healthy Saudi economy

§  By the end of 2003, the Law on Supervision of Cooperative Insurance Companies, promulgated by Royal Decree (M/32) dated 02/06/1424H, was enacted, followed shortly by the Implementing Regulation, early in 2004. The purpose of the Law and its Implementing Regulation is to regulate the insurance sector in Saudi Arabia

§  The Law entrusted the regulation and supervision of the insurance market in Saudi Arabia to SAMA. Shortly after the enactment of the Law and the Implementing Regulation, SAMA established a team of insurance supervisors to operate in its Banking Inspection Department. Since then, the team operates as an independent department within SAMA dedicated to insurance regulatory and supervisory activities

§  History of the insurance supervision department of SAMA:

§  SAMA’s Insurance Supervision Department aims towards:

-    Protecting policyholders and shareholders’ rights

-    Ensuring fair and effective competition and providing better insurance services with competitive prices and covers

-    Fostering stability of the insurance market

-    Developing insurance market in the region including training and providing employment opportunities for Saudi nationals