Al Sagr to discuss corrective action plan with Insurance Authority

Logo of Al Sagr Cooperative Insurance Co.

Al Sagr Cooperative Insurance Co. announced that it plans for an early meeting with the Insurance Authority (IA) regarding its receipt of a decision citing a violation of the supervisory authority's instructions.

The meeting will focus on discussing a corrective action plan and taking the necessary steps to ensure full compliance with supervisory and regulatory policies and instructions.

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 In a statement to Tadawul, the company said its management will work to rectify the errors urgently with the aim of lifting the suspension. 

It clarified that only the mandatory vehicle insurance product (third party) has been suspended, and that all other insurance products remain available to its customers.

The company pointed out that this decision will not affect its ability to meet its obligations and will not in any way impact the interests of the policyholders who hold valid insurance policies prior to the suspension date.

According to data compiled by Argaam, the IA decided to suspend Al Sagr’s right to sell the mandatory motor insurance product as of Feb. 19 for violating the supervisory and regulatory rules and amid the board of directors’ failure to adopt effective governance procedures.

The company anticipated that the decision would have a negative impact on its financial results for 2025, though the effect cannot be quantified at the time.