About ISD

The role of the insurance sector is to be a cornerstone of the Saudi financial services sector by providing reliable risk transfer mechanisms, promoting long-term savings, and serving as a conduit to channel funds from policyholders to investment opportunities, thus being a key enabler of a healthy Saudi economy
By the end of 2003, the Law on Supervision of Cooperative Insurance Companies, promulgated by Royal Decree (M/32) dated 02/06/1424H, was enacted, followed shortly by the Implementing Regulation, early in 2004. The purpose of the Law and its Implementing Regulation is to regulate the insurance sector in Saudi Arabia
The Law entrusted the regulation and supervision of the insurance market in Saudi Arabia to SAMA. Shortly after the enactment of the Law and the Implementing Regulation, SAMA established a team of insurance supervisors to operate in its Banking Inspection Department. Since then, the team operates as an independent department within SAMA dedicated to insurance regulatory and supervisory activities
History of the insurance supervision department of SAMA:

- Protecting policyholders and shareholders' rights

- Ensuring fair and effective competition and providing better insurance services with competitive prices and covers

- Fostering stability of the insurance market

- Developing insurance market in the region including training and providing employment opportunities for Saudi nationals