Part 1: Introduction
Purpose
1. This Code presents the general principles and standards that should be met by insurance and reinsurance companies, including branches of foreign insurance and reinsurance companies, and insurance related service providers with regard to their reinsurance practices.
2. The objective of This Code is to promote high standards of reinsurance practices within the insurance industry in accordance with the best international practices.
3. This Code must be read in conjunction with the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations.
Definitions
4. The term “Companies” in This Code is intended to include: insurance and reinsurance companies and insurance related service providers including insurance and reinsurance brokerages. The rest of the terms used in This Code shall have the same meaning as per article one (1) of the Implementing Regulations.
5. The term “Related Company” in this code means: a company (or one of several companies that SAMA may consider to be acting in concert) holding a shareholding of 10% or more of the equity of the licensed insurer, or a company in which the licensed insurer (either alone or with other companies that SAMA may consider to be acting in concert) holds a shareholding of 10% or more.
Scope
6. This Code applies to insurance and reinsurance companies, and insurance related service providers including insurance and reinsurance brokerages.
Compliance Measures
7. Companies must establish appropriate internal controls and procedures to ensure and monitor compliance with This Code, including the compliance of all contracted parties.
8. Companies must maintain adequate records to demonstrate compliance with This Code, including but not limited to, reinsurance strategy, reinsurance transaction records, scenario testing reports, and financial implications report.