IA seeks public input on licensing requirements for underwriting activity

IA says the draft licensing requirements for underwriting activities can help attract foreign companies

The Insurance Authority (IA) is seeking public feedback on draft licensing requirements for underwriting activities via the public consultation platform “Istitlaa” until Jan. 15, 2026.

The aim of introducing licensing requirements for underwriting activity is to grant insurance companies greater flexibility in risk distribution and product development, expand the insurance market, enhance pricing quality and accuracy through broader data availability and deeper risk analysis.

The move may also help attract foreign companies with advanced underwriting expertise, IA said.

The requirements stipulate that the licensing provisions apply to those seeking a license to practice underwriting activity, licensed entities, and companies contracting with them. License applications must be submitted to the authority and the activity cannot be practiced without obtaining a license. It is also required that the licensed entity’s head office and management be located within the Kingdom, it added.

The requirements set a minimum capital of SAR 1 million for granting a license, in addition to obtaining professional liability insurance with coverage of no less than SAR 3 million. They also require qualified professional competencies for underwriting positions and at least one-third of the board of directors or board of managers must possess experience or professional certifications in underwriting.

IA further outlined the licensing procedures, stating that the applicant will be notified within 30 working days of the application’s completeness or any deficiencies, with an equivalent period granted to rectify them.

A decision on the application will be issued within 90 working days from the date the application is completed. The authority emphasized that licensees must comply with the defined scope of business, enter into clear contracts with companies, and adhere to applicable laws and regulations.

Violators will be subject to statutory penalties, IA said.