Saudi Arabia’s financial regulator has issued a ban on combining insurance and reinsurance brokerage activities within the same company.
According to a report by Reuters, the prohibition is effective immediately, citing a statement from the Saudi Arabian Monetary Agency (SAMA) issued on January 02.
SAMA said that the rationale behind the move is to increase the stability of the country’s insurance industry, boost contributions to the growth of the national economy, and eliminate “wrong practices” in the industry.
The regulator ordered companies that currently have combined insurance and reinsurance operations to submit their plans on how to abide by the decision within three months. They were also given a period of one year to implement the necessary changes.
