United Cooperative banned from issuing, renewing auto policies

The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank and the insurance market regulator, has banned United Cooperative Assurance Co. from issuing or renewing auto insurance policies, effective Sep. 15, 2017, the insurer said in a statement to Tadawul on Sunday.

The company failed to meet regulatory requirements regarding insurance claims and internal auditing, SAMA added.

The central bank directed the company to appoint a SAMA-approved consultant to evaluate its measures to restructure its auto insurance sector.

United Cooperative will also prepare a corrective plan to deal with insurance claims settlements and processing customer complaints.

The Saudi insurer expects SAMA’s decision to weigh on sales as of Sep. 15, 2017. However, no negative impact is forecasted on the insurer’s financial position or its short-term profitability.