The Insurance Authority ("IA") has recently introduced a new compliance requirement that extends not just to those domiciled in KSA, but to all who are participating in KSA based insurance risks. IA has announced new requirements for the registration of foreign reinsurance companies covering KSA risks on a designated IA electronic platform.
Who is affected?
- All licensed insurance and reinsurance companies in KSA ceding risks to foreign reinsurers.
- All foreign reinsurance companies entering into, renewing, or negotiating reinsurance contracts covering risks in KSA, whether participating in KSA risks through brokers, agents or otherwise.
- All licensed reinsurance brokerages in KSA providing related services.
What is required?
- Foreign reinsurers must register on the IA's designated platform before entering into or renewing any reinsurance contract covering Saudi risks (whether facultative or treaty) by 1 March 2026 .
- Registration requires submission of specified information and documents via the platform.
- Licensed companies and reinsurance brokerages in KSA must verify, before signing any agreement, that the foreign reinsurer is registered and meets all regulatory and financial requirements.
- Registration does not exempt the insurance companies from conducting full due diligence as required prior to engaging with foreign reinsurers outside KSA, as set out under the Implementing Regulations of the Cooperative Insurance Companies Control Law.
- Licensed companies and brokerages are expected to encourage their foreign reinsurance partners to register promptly.
Enforcement:
- The IA will take regulatory action against any licensed company or brokerage that enters into new or renewed reinsurance contracts with unregistered foreign reinsurers after 1 March 2026.
- Sanctions may include warnings, fines, license suspension or revocation, and public disclosure of violations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
