Riyadh – Mubasher: The Saudi Arabian Monetary Authority (SAMA) has invited market experts and stakeholders to share their observations and comments on the draft rules governing bancassurance activities in the kingdom.

The draft rules, available through SAMA’s website, include requirements for practicing bancassurance activities across various stages and obligations of banks and insurance companies.

Moreover, articles 14 to 22 from the insurance intermediaries regulation will be revoked due to contradiction with the proposed mechanism of bancassurance activities.

SAMA noted that the rules aim to expand the scope of distribution and marketing of insurance products through banks; to facilitate the access of insurance products in obtaining client's financial needs from one place by regulating the practices of bancassurance in the Saudi market, as well as regulating the relation between the insurance company and the bank.

SAMA anticipates enhancing, through these rules, the contribution of the insurance sector to the Saudi economy, emphasizing that bancassurance rules have a substantial role in raising the demand and awareness of saving products by promoting the disruption of insurance products in isolated areas.