Saudi Central Bank releases draft of insurtech rules, invites opinions from public

Saudi Central Bank releases draft of insurtech rules, invites opinions from public

The Saudi Central Bank (SAMA) released the draft of insurtech rules to gather public opinion. In addition to strengthening the principle of transparency.

The move comes in line with the SAMA’s continuous efforts to develop the insurance sector and to keep abreast with developments in the insurance industry in general and insurance technology services in particular, SAMA said in a statement.

Supporting and enabling financial technology activities led to the emergence of a number of Fintech companies. Besides, the development of technology within insurance activities, the statement added.

The draft rules aim to enable insurtech companies to execute their work in accordance with a regulatory framework that features flexibility of commitment; inclusiveness of organizational fundamentals and innovation. Such rules ensure protecting customers’ rights in insurtech companies and encouraging fair competition in providing technical solutions and services to consolidate, stabilize and develop the sector.

The rules also include the regulation of several basic pillars; such as provisions of engaging, licensing and obligations of practitioners on several levels, for example, the technological environment-related obligations; the customer information accuracy and maintenance-related obligations; as well as general business behaviors; such as preserving customer rights, control and supervision.

SAMA has said it looks forward to regulate the relationship between insurtech companies; and their customers in a way that ensures the rights of all parties and provide appropriate services to beneficiaries.

SAMA invited members of the public; experts in the field and other interested individuals to provide their views and observations on the draft rules within 30 days. It noted that all views and observations will be considered before adopting the final version of the rules. This draft is available on the link: https://istitlaa.ncc.gov.sa/ar/Finance/SAMA/financialtechnology/Pages/default.aspx .