On 25 August 2025, the Saudi Insurance Authority (IA) issued a new circular No. 85 dated 28/01/1445AH (the Circular), under the Supervision of Cooperative Insurance Companies Law issued by Royal Decree No. M/32 dated 31 July 2003 and its Implementing Regulations issued by the Saudi Arabian Monetary Agency, dated 20 of April 2024 (the Insurance Regulations), with reference to Article 42 of the Implementing Regulations of the Cooperative Insurance Companies Control Law. The circular requires all foreign reinsurance companies to register on the IA’s designated digital platform by 1 March 2026. This directive applies to licensed insurance companies, reinsurance companies, and reinsurance brokerage firms holding a license in the Kingdom.

Strengthening oversight and compliance

This development is in line with the IA’s mandate under the Insurance Regulations, specifically Article 42, which requires insurance and reinsurance companies to maintain proper records and submit periodic reports to the IA to ensure compliance with regulatory standards and facilitate effective oversight.

The Circular reinforces the IA’s role in enhancing market oversight, promoting transparency, facilitate due diligence, and ensuring that all reinsurance activities meet the required standards.

Importantly, the registration of a foreign reinsurer on the IA platform does not exempt licensed entities from verifying the reinsurer’s compliance with Article 42 prior to entering into any agreement. This underscores the IA’s emphasis on substantive regulatory compliance, not merely procedural formalities.

Obligations for licensed companies

Licensed insurance and reinsurance companies intending to enter into facultative or treaty reinsurance agreements with foreign reinsurers must verify that those reinsurers are properly registered on the IA platform before signing any agreement.

Reinsurance brokerage firms are similarly required to confirm the registration status of foreign partners when facilitating reinsurance transactions.

Regulatory enforcement

The IA has indicated that regulatory action will be taken against any licensed company that enters into new or renewed agreements with unregistered foreign reinsurers after the deadline.

Industry stakeholders are encouraged to begin the registration process as soon as possible to avoid potential disruption to their operations. Licensed insurers and brokers are also expected to encourage their foreign partners to complete registration promptly.

Support and contact

For inquiries regarding the registration process, please do not hesitate to contact us. We can happily simplify the process for you.