Saudi insurers required to manage risk

by David Masters

Story link: Saudi insurers required to manage risk

Insurance companies and brokers operating in Saudi Arabia will soon be required to have a comprehensive risk management strategy in place.

The Saudi Arabian Monetary Agency’s (SAMA) insurance supervision department last month published the risk management Code, which will be effective from 18th January.

The Code’s objective, said SAMA, is to encourage high standards of risk management.

Under the Code, a company’s board of directors and senior management team are responsible for assessing, mitigating, and monitoring risk.

The new regulations will require companies to assign at least two risk management officers – one for general and health insurance, and one for savings and protection insurance.

In addition, insurance companies will be required to outline the risk management responsibilities of senior managers, to develop contingency plans, and to provide SAMA with risk management reports.