IA seeks public feedback on rules for captive insurance players

Logo of Insurance Authority (IA)

The Insurance Authority (IA) published the draft regulations for captive insurance companies on the public consultation platform Istitlaa, with the feedback window open until March 16.

The proposed regulations aim to establish licensing requirements and operational conditions for captive insurance companies and captive insurance management companies, while ensuring effective supervision and oversight to promote fairness and transparency in the captive insurance sector.

Moreover, the regulations shall apply to all captive insurance companies, captive insurance management companies, and any entities or individuals engaged in such activities within Saudi Arabia, as well as any other parties specified under the regulations.

The draft rules consist of 60 articles divided into 12 sections, covering key areas: Preliminary provisions, conduct of restricted insurance business, captive insurance management companies, operational practices, capital requirements, eligible own funds and investment, administrative and control functions, asset and liability valuation, actuarial reporting requirements, transfer of captive insurance business, run-off phase procedures and final provisions.

According to the draft, a captive insurance company is defined as a locally established company or foreign branch licensed by the authority, whose primary purpose is to conduct captive insurance business in accordance with the proposed regulations.