SAMA bans Wafa from issuing auto insurance policies

The Saudi Arabian Monetary Authority (SAMA) has banned Saudi Indian Company for Cooperative Insurance (Wafa) from issuing new auto insurance policies or renewing existing ones due to weak internal controls and compliance management, as well as non-compliance with regulations over the issuance of mandatory auto policies. 

The company has violated the Cooperative Insurance Companies Control Law and its executive regulations, the insurer said in a statement on Tadawul on Sunday.

SAMA, therefore, has banned the insurer from issuing or renewing auto insurance policies, but the company may add auto insurance policies to valid policies, the statement said.

Wafa Insurance is also required to present a specific board-approved time plan, within 20 days, which includes all corrective measures to be taken in order to fix irregularities in this regard.

The insurer added that it expects the ban to have a negative impact on its sales in the short-run, but does not expect a material negative effect on its financials.