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     SAMA issued "the Actuarial Work Regulation for Insurance and/or Reinsurance Companies" on RAB'I 27, 1437H (January 7, 2016), which aims at prompting high standards of actuarial practices within the Kingdom of Saudi Arabia. SAMA required insurance and/or reinsurance companies to apply the Regulation during a period of no later than 3/5/1438H (1/1/2017).

     The Regulation enumerates the procedures for appointing an Actuary and his or her roles and responsibilities. The actuary is the person that applies probability and statistics theory under which products are priced, obligations are evaluated and provisions are allocated.

     SAMA reiterated that it has the power, when it sees the actuary unfit to perform the mentioned duties, to make such company replace him/her by another one that has the competency necessary to carry out such duties. If the company does not appoint a replacement, SAMA has the right to appoint an actuary at the company's expenses. Non-compliance with the provisions mentioned in this Regulation is considered a violation of the Law on Supervision of Cooperative Insurance Companies, its Implementing Regulations and requirements for license or business approval; and will make the insurance, reinsurance companies and/or actuary subject to legal punishments.

     SAMA indicated that it pays particular attention to protecting beneficiary rights in the insurance sector; and that the application of this Regulation will have positive impacts on the beneficiary rights protection in the insurance sector and on enhancing transparency and disclosure principles.

     The full text of "the Actuarial Work Regulation for Insurance and/or Reinsurance Companies" can be accessed at (This link).