The Saudi Central Bank (SAMA) has released a new set of draft rules for the country’s insurtech sector to ensure that the rights of both companies and customers are protected.
A news report by Reinsurance News, an online medium with special focus on global reinsurance business, quoted the apex bank as stating that the draft rules were designed to enable insurtech firms to execute their work in accordance with a regulatory framework that features flexibility of commitment, inclusiveness of organizational fundamentals and innovation.
SAMA clarified: “Such rules ensure protecting customer’s rights in insurtech companies and encouraging fair competition in providing technical solutions and services to consolidate, stabilize and develop the sector.”
In addition, the rules also focus on the regulation of several basic pillars, such as provisions of engaging, licensing and obligations of practitioners on several levels.
These include, for example, technological environment-related obligations, customer information accuracy and maintenance-related obligations, as well as general business behaviors, such as preserving customer rights, control and supervision.
The apex bank has invited the public and the re/insurance industry stakeholders to share their views on the proposed rules over the next month, before it commits to adopting a final version of the rules.
