During the period 22-23 February 2011

In the name of God, the Most Gracious, the Most Merciful, and may peace and blessings be upon our Prophet Muhammad, his family and all of his companions,

May God's peace, mercy and blessings be upon you, and may God bless your good morning. It gives me pleasure to welcome you all to the first symposium held by insurance companies operating in the local market in cooperation with the Institute of Banking. I hope that other seminars will follow to discuss the aspirations of the sector and the companies operating in it and to lay down the appropriate mechanisms to develop the work environment to serve the country and the citizen.

Since the beginning of the last decade, the Saudi economy has witnessed huge economic and social development, thanks to God, and to the decisions taken to restructure and organize the national economy, modernize regulations and legislations that have promoted efficiency and competitiveness of the economy and support the optimal operation of production factors in a climate that attracts local and foreign investments. The GDP of the non-oil sector has grown in the past five years at an average annual rate of 4.4 percent, as well as the private sector's output by 4.5 percent, whose contribution to the real GDP has increased from 45.5 percent in 2006 to about 48.4 percent in In 2010 AD. Among the development indicators in the past five years is the volume of actual spending in the state's general budget, which amounted to 2,600 billion riyals, and the balance of payments recorded a surplus of about 1557 billion riyals. The public debt declined to about 167 billion riyals, or 10.2 percent of GDP. Total bank assets increased by more than 550 billion riyals to reach about 1415 billion riyals. The Kingdom also ranked 11th in the world and first in the Middle East region in terms of the competitiveness of the business and investment performance environment for 2010, according to the World Bank Group report. The development witnessed by the Kingdom in the past years has been characterized by the inclusiveness of all regions of the Kingdom, as a huge number of development projects have been approved in the field of infrastructure modernization such as roads, airports, water, electricity, health and educational services and others. Therefore, it is expected that the strong growth of the Saudi economy will continue in the coming years, and this will reflect positively on the financial sector in general and insurance activity in particular.

Dear guests

The insurance sector is considered an important and vital sector for the essential role that insurance companies play in the economic system in general, and in reducing risks and compensating those affected, leading to the development and stability of the activity of the public and private sectors. From this standpoint, SAMA was keen to organize the insurance sector according to the best standards and professional practices and to apply them, whether issued by the relevant international bodies or issued by SAMA itself. SAMA constantly ensures that all companies operating in the insurance sector adhere to these practices and work according to regulations, taking into account the positive future aspirations of the sector.

Dear guest

To ensure compliance with the laws, regulations and instructions issued, SAMA conducts annual supervisory visits to all insurance companies with the aim of ensuring that they are at a high level of efficiency and professionalism. In addition to the above, SAMA conducts inspection visits to companies to ensure their compliance with laws, regulations and work behavior controls in dealing with the insured. To ensure companies are able to fulfill their contractual obligations, SAMA periodically checks the robustness of the companies' financial positions. SAMA will continue its efforts in supervising and controlling the insurance sector, and ensuring that all companies adhere to the laws and regulations through conducting more visits, both of their office and field types.

The financial results of the insurance sector showed a growth in demand for insurance products and services, as the total estimated written premiums at the end of the year 2010 amounted to 16.41 billion riyals, an increase of 12.4% over the year 2009, which amounted to 14.6 billion riyals. Consequently, the insurance sector is expected to account for 1% of the GDP in 2010. It should be noted that the remarkable growth in all insurance products in their various branches, whether general insurance products, medical insurance, protection and savings insurance, is a promising indicator of the growth of the level of insurance awareness among individuals, institutions and companies operating in the Kingdom. It is also expected that insurance claims will reach 4.7 billion riyals in 2010, compared to 5.8 billion riyals in 2009. Claims paid in the event of damage are the basic feature of the services provided by insurance companies, which in turn help to provide reassurance and a sense of stability and safety for individuals, institutions and companies. Perhaps the recent rains in the city of Jeddah and the resulting damages testify to the importance of insurance and its benefits in compensation for property losses. And because of the importance of effective insurance participation in such cases.

SAMA has directed all insurance companies to expedite compensation for those affected by the insured, in accordance with the provisions of the insurance documents issued in their favor, and to facilitate procedures for receiving the claims of those affected and to be fully keen on dealing with them with high professionalism and expediting their settlement. I also assure that SAMA will communicate and follow up on this matter and take strict legal measures against companies that prove their default. We are fully confident in your awareness of the importance of dealing with it with high professionalism, which will positively affect the good reputation and confidence in you and the strength of the insurance sector in general. Over the past few years, the insurance sector has been able to achieve good results not only at the level of services provided, the diversity of products, and building confidence with the beneficiaries of its services, but also in the level of compliance with the laws, regulations and instructions issued. Two people may not disagree that the nature of an industry and its stage of development necessitate that we all follow global, regional and local developments and study the best ways to enhance the strength, capabilities and modernity of the local insurance sector and its ability to face the challenges, the most prominent of which is the expectation of increased competition between insurance companies.

This calls for great attention to a professional commitment in applying the technical aspects of pricing policies, managing claims, providing the appropriate technical structure for the size and nature of the business and the investment policy, in addition to adhering to the standards of financial solvency and providing the necessary technical allocations to ensure the safety and durability of companies' financial positions. Another challenge is the ability to develop and innovate in providing the finest products and services to customers to meet their needs.

Distinguished attendees

We expect that the insurance sector will continue to improve its performance by achieving a balanced growth between the objectives of companies and their available resources and meeting the needs of the market and beneficiaries in order to enhance the level of confidence in the sector.

In the end,

I would like to conclude talking to you today by emphasizing the importance of the insurance sector in qualifying, training and employing the nation's sons and daughters, through more attention to developing and developing human resources, training policies, and raising the Saudization rate in companies in general. To this end, SAMA has designed a mandatory exam in insurance fundamentals to measure the extent of the sector employees and those in charge of it are familiar with the basic aspects of the insurance industry and its regulations, regulations and standards. Companies should organize technical and professional development programs that raise the level of insurance awareness and help provide human competencies that serve the insurance sector and the economy.