Article Four
First: Insurance and/or Reinsurance Companies:
A license application including the following shall be submitted to SAMA:
1. Completed licensing application.
2. Memorandum of Association.
3. Articles of Association
4. Organizational structure
5. Feasibility study.
6. Five-years business plan that shall include as a minimum, the following:
a. Classes of insurance that will be undertaken by the Company.
b. Ability to cede or accept reinsurance treaties for the classes the company intend to reinsure.
c. Marketing plan.
d. Projected costs and financing to start the Company’s operation.
e. Projected underwriting growth taking into consideration solvency margin requirements.
f. Expected number of employees and a saudization plan for training and employment.
g. Annual cost based on projected growth rate.
h. Projected financial statements related to the growth rate.
i. Technical Provisions statement for the proposed growth of the insurance operation certified by a qualified Actuary.
j. Branching distribution plan in the Kingdom.
7. Any agreements with outside parties.
8. An Irrevocable bank guarantee issued by one of the local banks for the capital required, such guarantee must be renewed until the capital is paid up.
Second: Insurance and Reinsurance Services Provider:
A license application including the following shall be submitted to SAMA:
1. Completed licensing application.
2. Memorandum of association.
3. Articles of Association.
4. Organizational structure
5. Feasibility study.
6. Three-years business plan that shall include as a minimum, the following:
a. Classes of insurance that will be undertaken by the insurance and reinsurance services provider.
b. Projected costs and financing to start the operation.
c. Projected growth of the business.
d. Expected number of employees and a saudization plan for training and employment.
e. Annual cost based on projected growth rate.
f. Projected financial statements related to the growth rate.
g. Branching distribution Plan in the Kingdom.
7. Any agreements with outside parties.
8. An Irrevocable bank guarantee issued by one of the local banks for the capital required, such guarantee must be renewed until the capital is paid up.
Third: Individuals Providing Insurance and reinsurance Services:
Any individual who wish to practice any of the insurance professions shall obtain a license from SAMA providing that the following requirements are fulfilled:
1. A university degree as a minimum, and five years relevant insurance experience, or an insurance professional designation accepted by SAMA.
2. Pass the examination approved by SAMA to engage in the designated insurance profession, or any other equivalent qualifications acceptable to SAMA.