The Saudi Central Bank (SAMA) announces the issuance of the rules of Insurance Product Approval, that aim to enhance and develop a new concept in the insurance product approvals. This comes in line with SAMA's keenness to fulfil the needs of the insurance sector and to raise the quality of the product approval process as well as keeping pace with developments witnessed by the Kingdom.
SAMA clarifies that these rules pursue to develop the necessary regulatory procedures and requirements prior to marketing and sale of insurance products by insurers to clients, and to define the categories of insurance products that require either SAMA prior approval or prior notification of the product before starting marketing and sale. Besides, these rules should contribute to enhancing the efficiency of risk management related to providing insurance products.
Nevertheless, the rules require insurance companies to form an internal committee to govern the procedures indicated in these rules, in order to maintain the quality of design and development of the insurance product, in addition to the evaluation of risks and efficiency of the insurance products in order to ensure that the insurance products meet the regulatory requirements.
Noting that these rules can be viewed through visiting SAMA's website on the (link).