Draft Insurtech rule: SAMA invites public consultation

The draft rules aims to enable insurtech companies to execute their work in accordance with a regulatory framework that featured flexibility of commitment, inclusiveness of organisational fundamentals and innovation. Such rules ensure protecting customer’s rights in insurtech companies and encouraging fair competition in providing technical solutions and services to consolidate, stabilise and develop the sector. These rules also include the regulation of several basic pillars, such as provisions of engaging, licensing and obligations of practitioners on several levels, such as the technological environment-related obligations, the customer information accuracy and maintenance-related obligations, as well as general business behaviours, such as, preserving customer rights, control and supervision.

SAMA looks forward, through the draft rules, to regulate the relationship between insurtech companies and their customers in a way that ensures the rights of all parties to the relationship and provide appropriate services to the beneficiaries.

The draft can be reached by visiting Public Consultation Platform affiliated to the National Competitiveness Center on this link.

The move is in line with the Saudi Central Bank’s (SAMA) efforts to develop the insurance sector and to keep abreast with developments in the insurance industry in general and insurance technology services in particular. In addition, supporting and enabling  financial technology activities has led to the emergence of a number of Fintech companies and to the development of technology within Insurance activities.