The Saudi Arabian Monetary Authority (SAMA) carries out its role in overseeing and supervising the insurance sector and other related responsibilities to protect the insured and beneficiaries of the insurance and the preservation of their rights. Based on the financial statements provided by WAFA in the financial reports of the fourth quarter of 2017 which reveals that the company's actual solvency margin continued falling below requirements, SAMA announces the following.
As a result of the company's failure to meet the solvency margin requirements, SAMA announces that it has decided to issue a final warning to the company and to oblige the company maintaining the required solvency margin no later than 30/09/2018 and appoints an independent consultant at the expense of the company to provide advice on this matter. In case that the company does not perform effective measures to adjust the solvency margin in accordance with the requirements of the executive regulations of the Cooperative Insurance Companies Control Law, or in case the company experiences sharp decline in its financial solvency. SAMA shall take one or more actions that are guaranteed by the Cooperative Insurance companies Control Law and its Executive Regulations in order to protect the rights of the insured and the beneficiaries of the insurance coverage including preventing the company from accepting new subscribers, investors in any of its insurance activities.
SAMA wished to inform the public that it has previously addressed the Company with several letters at varying dates over the past years regarding the lower solvency margin and the need to comply with the requirements of the solvency margin. This announcement was made out of SAMA's interest to keep the public informed. SAMA also invites all insureds and beneficiaries to adhere to their rights and to review the company in this regard. In the case of no response, insureds should file a complaint to the Consumer Protection through SAMACARES.SA website or by calling the toll free 8001256666.