RIYADH: The establishment of an insurance authority will help boost the local industry, said the representative of Saudi Arabia’s insurance industry.   

Adel Al-Eisa said the move would help the sector align with global best practices and international standards, besides aligning with the Kingdom’s objective of fostering a world-class insurance ecosystem.    

Al-Eisa said the authority’s focus on regulation and oversight will provide strategic guidance and support to enhance the efficiency of the domestic insurance sector.    

The spokesperson added that the new authority will help boost the sector’s economic output by empowering local insurance companies.    

The establishment of the authority represents a significant step toward strengthening Saudi Arabia’s insurance sector, facilitating its integration into the global financial landscape and bolstering its economic contribution.   

“The independent entity will help to raise greater awareness of the importance and value of quality insurance products, services and solutions, in addition to protecting the rights of policyholders and beneficiaries, ensuring the stability of the insurance sector, strengthening financial stability and solidifying contractual relationship principles,” said Al-Eisa.  

He added: “This represents an exciting chapter for the Kingdom as a whole, with the creation of the new innovative entity, the Saudi Central Bank’s ongoing efforts and the work of the Council of Health Insurance to regulate the nation’s fast-evolving insurance sector.”  

The representative continued, emphasizing the entity’s potential to empower local and Saudi-based insurance companies, enabling them to retain a more substantial portion of risks within the domestic market.

Furthermore, Al-Eisa highlighted the insurance authority’s commitment to fostering local talent and enhancing national expertise, elevating localization rates, forging impactful partnerships, facilitating mergers, attracting investments and expanding new services, including savings products.

Last week, Saudi Central Bank Gov. Ayman Al-Sayari affirmed that the insurance authority will actively contribute to developing the insurance sector. It will provide the conducive environment necessary for the emergence of robust insurance entities capable of competing and thriving in the industry. 

He stated that the authority’s role in safeguarding the stability of the insurance sector and the broader national economy, as well as protecting the interests of beneficiaries and policyholders, remains paramount.