IA launches consultation on statutory deposit returns to companies

Logo of Insurance Authority (IA)

The Insurance Authority (IA) launched a draft amendment to Article 58 of the Executive Regulations of the Cooperative Insurance Companies Control Law, concerning the investment returns of statutory deposits for companies.

 

The draft is open for consultation on the IA platform until Jan. 6, 2026.

 

According to the authority, the amendment proposes that the investment returns on statutory deposits should be returned to the insurance and/or reinsurance companies instead of the Saudi Central Bank (SAMA).

 

The authority explained that the change aims to motivate companies in the sector, as well as foreign companies looking to invest in the local insurance market. This would have a favorable impact on the companies’ financial positions and align with the best international practices.

 

Current & Proposed Amendment for Article 58:

Current Article

Proposed Article

The statutory deposit must be 10% of the paid-up capital, and SAMA may raise this ratio up to a maximum of 15%, according to the risks facing the company.

The company must pay the statutory deposit within 3 months from the date of licensing in the bank designated by SAMA at the time.

The deposit will be invested by the central bank, and the returns belong to the central bank.

The statutory deposit must be 10% of the paid-up capital, and the authority may raise this ratio up to a maximum of 15%, according to the risks facing the company.

The company must pay the statutory deposit within 3 months from the date of licensing in the bank designated by the authority at the time.

The deposit will be invested by the authority, and the returns belong to the company.
 

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