SAMA issues rules for insurance product approval

Saudi Central Bank (SAMA) issued rules for approval of insurance products, with the aim to develop the necessary regulatory procedures for marketing and sale of such products by insurers, the bank said in a statement on Tuesday, Dec. 15.

The rules also seek to define the categories of insurance products that require either SAMA’s approval or prior notification of the product before starting marketing and sale.

In addition, these rules are set to contribute to enhancing the efficiency of risk management related to providing insurance products, SAMA said.

The regulations require insurance companies to form an internal committee to govern the procedures mentioned in the rules, in order to maintain the quality of design and development of the insurance product, in addition to the evaluation of risks and efficiency of the insurance products in order to ensure that the insurance products meet the regulatory requirements.

This is in line with SAMA's efforts to fulfil the needs of the insurance sector and to raise the quality of the product approval process as well as keeping pace with developments witnessed by the Kingdom, the statement said.