The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank and insurance market regulator, has banned Allianz Saudi Fransi Cooperative Insurance Co. from issuing new motor insurance policies or renewing current ones, effective Jan. 29, the insurer said in a statement to Tadawul.
The move came as a result of serious violations related to mandatory insurance policies and failure to meet regulatory requirements on pricing and market competitiveness, SAMA said in a separate statement.
Accordingly, the central bank has ordered Allianz Saudi Fransi to adopt a corrective plan and submit a report detailing the measures taken in this regard.
The ban only applies to mandatory auto insurance policies (third party insurance) and does not include comprehensive vehicle insurance or other types of policies, the insurer said.
The decision does not affect clients who already have valid insurance policies.
While the ban will likely weigh on Allianz Saudi Fransi’s sales in the short term, no adverse negative impact is expected on the company’s financial position.
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