Licensing Requirements
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.
Article Five
SAMA may apply penalties provided under Article (19) of the insurance law and request application of the penalties stipulated in Article (21) of the insurance law in case of submitting incorrect or false information.
Article Six
1. SAMA shall notify the applicant within 30 working days confirming that the application is complete. Whereby, the application is incomplete SAMA shall notify the applicant of any further requirements or missing documents.
2. All incomplete and/or missing documents shall be provided within 30 working days from SAMA’s notification, otherwise the application shall be cancelled and the applicant must re-submit a new application for consideration.
3. SAMA shall notify the applicant within 90 working days from the receipt of a completed application of its approval, or its rejection by providing reasons.
Article Seven
The applicant shall pay SAMA a non-refundable licensing application processing fee of ten thousand Saudi Riyals (SR 10,000). Upon approval of the application, the applicant shall pay SAMA the following licensing fee:
■ (SR 100,000) One hundred thousand Saudi Riyals for Insurance Company.
■ (SR 200,000) Two hundred thousand Saudi Riyals for Re-insurance Company.
■ (SR 300,000) Three hundred thousand Saudi Riyals for Insurance and Reinsurance Company.
■ (SR 25,000) Twenty five thousand Saudi Riyals for Insurance and reinsurance Services Providers, except the actuary and the insurance advisor.
■ (SR 5,000) Five thousand Saudi Riyals for Actuaries and Insurance Advisors.
Article Eight
Insurance and reinsurance Services shall be provided by a Person licensed in the kingdom with a minimum capital requirement of:
■ (SR 3,000,000) Three million Saudi Riyals for Insurance Brokerage.
■ (SR 3,000,000) Three million Saudi Riyals for Insurance Claims Settlement Specialist (Third Party Administrator).
■ (SR 500,000) Five hundred thousand Saudi Riyals for Insurance Agency.
■ (SR 500,000) Five hundred thousand Saudi Riyals for Loss Assessor and Loss Adjuster.
■ (SR 150,000) One hundred and fifty thousand Saudi Riyals for Insurance Advisor.
■ (SR 150,000) One hundred and fifty thousand Saudi Riyals for Actuary.
Article Nine
Insurance and Reinsurance Services Providers shall obtain an insurance policy to cover professional liability risks for negligence, wrongdoing and dereliction of duties with a minimum coverage limit of:
■ (SR 3,000,000) Three million Saudi Riyals for Insurance Brokerage.
■ (SR 6,000,000) Six million Saudi Riyals Reinsurance Brokerage.
■ (SR 1,000,000) One million Saudi Riyals for Insurance Agency.
■ (SR 3,000,000) Three million Saudi Riyals for Actuary or Loss Assessor and Loss Adjuster.
■ (SR 1,000,000) One million Saudi Riyals for Insurance Claims Settlement Specialists (Third Party Administrator).
■ (SR 500,000) Five hundred thousand Saudi Riyals Insurance Advisor.
Article Ten
The founders of the Company, and owners of insurance professions shall be of good conduct and reputation with no convictions by court action affecting their honor and integrity.
Article Eleven
The commercial registration shall be restricted to the licensed insurance activity. SAMA shall be supplied with a copy of such registration and any subsequent renewals thereof. Any other unlicensed activities shall not be practiced.