SAMA issues bancassurance rules draft

The Saudi Arabian Monetary Authority (SAMA) has invited observations and comments on the draft rules governing bancassurance activities. This step comes in continuation of SAMA’s role in developing the financial services environment and aligning with the latest technical developments in the insurance industry in correspondence with SAMA’s objectives of Insurance sector growth along with spreading insurance culture and awareness 

Once passed, the new draft rules aim to expand the scope of distribution and marketing of insurance products through banks; to facilitate the access of insurance products in obtaining client’s financial needs from one place by regulating the practices of bancassurance in the country, as well as regulating the relation between the insurance company and the bank. Bancassurance rules have a substantial role in raising the demand and awareness of saving products by promoting the disruption of insurance products in isolated areas, stated a press release. Through these Rules, SAMA anticipates to enhance the contribution of insurance sector to the national economy. Click here to access the the draft rules.