SAMA sets clear transformation plan for insurers, reinsurers to apply new IFRS: Governor

Fahad Abdullah Al-Mubarak, Governor of Saudi Central Bank (SAMA) 

The Saudi Central Bank (SAMA) is always working to upgrade international controls and standards, Governor Fahad Abdullah Al-Mubarak said, noting the recent move to apply the International Financial Reporting Standards (IFRS17), which will replace the currently used IFRS4 early next year.   

SAMA, in cooperation with companies, developed a clear transformation plan for insurance and reinsurance firms to implement the new standard. The work on the first three stages of the implementation of the project was successfully completed, while work is underway on the last phase, Al-Mubarak said during his speech at the Saudi Insurance Symposium today, Sept. 28. 

He explained that the Saudi insurance sector is recently going through stages of growth, maturity and development, the most prominent of which are mergers and acquisitions between insurance companies and capital increase.

There is a tendency among several companies to raise their capital due to the expansion of business and high growth rates, which enhances the capacity, positions and solvency of companies, the Governor noted. 

Meanwhile, mergers and capital hikes contribute to supporting the stability and growth of the sector by creating large insurance entities capable of competition, growth and innovation, to meet the requirements of beneficiaries in the sector, preserve their rights, improve the quality and types of service provided to customers, and raise the possibility of regional expansion.