The CEO of the Insurance Authority, Eng. Naji Al-Tamimi, said that the capital of the insurance sector in the Kingdom rose to 36 billion riyals ($9.6 billion), compared to 25 billion riyals ($6.7 billion) a few years ago, indicating that the Authority aims to reach 50 billion riyals ($13.3 billion), in line with the goals of the National Insurance Strategy aimed at doubling the size of the market.
Al-Tamimi stated during a session at the “Money20/20” conference on Monday in Riyadh that the Authority is witnessing a demand from insurance and reinsurance companies to enter the Saudi market, explaining that during the current quarter it granted two licenses to two new reinsurance companies, in addition to a license for an insurance company.
He added that the Authority expects to grant two additional reinsurance licenses, and perhaps two licenses to other insurance companies, during the next quarter, indicating that it is reviewing more applications and expects a larger number of players to enter the market in the coming months.
Naji explained that the establishment of the Authority about three years ago came in light of the major transformations witnessed by the Saudi economy and business sector, including major and giant projects, attracting advanced competencies and expertise, in addition to the increase in the number of visitors and tourists, and the resulting change in the nature of risks and market needs.
He added that one of the Authority's main roles is to build and develop the National Insurance Strategy, which was approved and launched last January, and includes about 72 initiatives distributed among 11 programmes.
He stressed that technology lies at the heart of the strategy, pointing out that the authority’s role is not limited to oversight and supervision, but rather extends to developing the market, empowering the sector, and providing solutions that support the economy and society.
Al-Tamimi said that the Authority began operating the first phase of the “data center” about two years ago, which links insurance companies’ databases to the Authority’s system, using data change capture (CDC) technology, which allows monitoring changes in companies’ databases and making them immediately available within the system.
He explained that the Authority shares this data with the government system, allowing various parties to benefit from it, and at the same time gives the Authority greater ability to follow and supervise the market.
In the field of innovation, Al Tamimi said that the Authority recently launched the Innovation Lab “iLab”, which allows innovators, entrepreneurs and investors to test their solutions and innovations, in parallel with the “experimental legislative environment” that provides a safe regulatory framework for testing solutions before they expand.
He added that the authority receives ideas and proposals from young Saudis and investors, and opens the laboratory window once every six months, stressing that the speed of technical development requires regulatory authorities to keep pace with innovation and support new solutions, especially in the insurance technology sector.
