The KSA Insurance Authority (“IA”) requires foreign reinsurers that underwrite or renew contracts covering Saudi Arabia risks to complete registration on the IA’s designated electronic platform before participating in any facultative or treaty placements connected to KSA. The framework applies to all reinsurance participations relating to KSA risks, including those conducted via brokers or other intermediaries. The compliance deadline for completing registration is 1 March 2026.
Core Requirements:
- Foreign reinsurers must register on the IA’s designated platform before entering into or renewing any reinsurance contract covering Saudi risks (whether facultative or treaty) by 1 March 2026 .
- Registration requires submission of specified information and documents via the platform.
- Licensed companies and reinsurance brokerages in KSA must verify, before signing any agreement, that the foreign reinsurer is registered and meets all regulatory and financial requirements.
- Registration does not exempt the insurance companies from conducting full due diligence as required prior to engaging with foreign reinsurers outside KSA, as set out under the Implementing Regulations of the Cooperative Insurance Companies Control Law.
- Licensed companies and brokerages are expected to encourage their foreign reinsurance partners to register promptly.
Enforcement and Sanctions:
The IA has indicated it will take regulatory action against any licensed company or brokerage in KSA that enters into new or renewed reinsurance contracts with foreign reinsurers that have not completed the required registration after the compliance deadline. Potential sanctions include warnings, monetary fines, suspension or revocation of licenses, and public disclosure of non-compliance.
Practical Next Steps:
Foreign reinsurers participating on KSA risks should finalise their IA registration well ahead of the 1 March 2026 deadline to avoid any disruption to placements or renewals. KSA-licensed cedants and reinsurance brokerages should implement pre-bind checks to confirm counterparties’ registration status and maintain evidence of verification for supervisory review.
How can Al Tamimi help?
Their team of insurance experts brings unrivalled experience in advising on licensing and regulatory compliance within the KSA insurance sector. For any further information, advice or assistance, please feel free to contact the key contacts.
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