SAMA Vice Governor, Abdulaziz Al-Furaih, gave the opening speech at the Risk Engineering and Management Seminar, welcoming participants, both from Saudi Arabia and from abroad, and thanking the organizers and speakers. The Seminar was held at the Institute of Finance on November 6, 2016 and was organized by the Swiss Reinsurance Company (Swiss Re), with the support and participation of the Executive Committee of the Directors General of the Saudi insurance companies.

             In his speech, Vice Governor Al-Furaih emphasized the important and vital role that the insurance industry plays, for not only does it compensate those affected by accidents and disasters after the event, but also for its preventative role through encouraging the adoption of effective risk management techniques as well as professional and quality management practices with a view to preventing accidents and disasters in the first place, applying the principle of "an ounce of prevention being worth a pound of cure".

The Vice Governor pointed out that SAMA realized the importance of the risk management role since the inception of its responsibilities as the regulator and supervisor of the insurance industry, and has always insisted that insurance companies perform proper professional inspections and examinations of the risks insured prior to extending coverage, with the objective of ascertaining that the insured entities are able and willing to take the minimum reasonable measures necessary for proper risk management, and thus are able to avoid accidents or to mitigate their severity when they occur.

             Al-Furaih stated that, to supplement and further strengthen the relevant general laws and regulations, SAMA issued over the past two years explicit instructions requiring both the insurance companies and the insureds to follow specific procedures when underwriting property and engineering risks, which will have a major positive effect on accidents, in terms of frequency and severity, particularly the requirement that the applicant provide a civil defense inspection certificate prior to the acceptance of the risk.

            Al-Furaih expressed SAMA's pleasure and satisfaction with the increased cooperation and coordination between the insurance industry and the General Directorate of Civil Defense, such cooperation benefiting the general public through preserving property and thus contributing to the growth of the national economy.

             Vice Governor Al-Furaih noted that the Seminar program included a review of risk management, an exchange of related relevant experiences and discussion of the latest developments in this field in addition to the practical program which included field visits to a number of sites to gain hands-on experience on how to inspect them and estimate their degree of risk. He also noted that the Seminar would discuss best international practices in risk engineering and management in various industries and activities and through the various phases of the entity's lifecycle. In addition, Al-Furaih indicated that the distinguished international experts participating in the Seminar would shed light on real-life, practical cases, thus enlivening the Seminar with practical knowledge.

             The Vice Governor invited the participants to enrich the Seminar with contribute with meaningful discussions and practical, implementable recommendations with clear objectives that will enable the insurance industry and the concerned government agencies to develop realistic plans and to set realistic deadlines to implement these recommendations prioritizing those with the highest potential positive impact.

             Al-Furaih concluded his speech by reiterating SAMA's support for such Seminar and for all events that help bring best practices and international experiences to the Saudi insurance market and help develop the theoretical and practical knowledge of the national cadres.

He stressed the importance SAMA attaches to the insurance industry's efforts to attract and train Saudis, viewing this as one of the most important priorities as a service to the youth of this country and to contribute to national prosperity, in line with the vision and aspirations of the nation's leadership.