SAMA licenses first foreign insurance company branch in Saudi Arabia

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) announced today, Feb. 6, licensing of Cigna Worldwide Insurance Co., the first foreign health insurance company branch in Saudi Arabia.

The move aims to fulfill the objectives of the “Rules for Licensing and Supervision of Branches of Foreign Insurance and/or Reinsurance Companies in Saudi Arabia".

It came as part of SAMA's role in supporting financial stability and contributing to the national economic growth towards achieving the objectives of Saudi Vision 2030, the central bank said in a statement.

The license issuance is under SAMA’s initiatives to encourage foreign direct investments (FDIs) in the Kingdom's insurance market to increase the sector's competitiveness and utilize the potential of the Saudi economy.

Additionally, enabling new international entrants will enhance the quality of provided services, increase the diversification of investors and introduce unique business models to the market.

Furthermore, the central bank reaffirmed its ongoing efforts to support the financial sector as a whole, raise the level of effectiveness and flexibility of financial transactions and encourage innovation in financial services. Consequently, it will enhance financial inclusion in the Kingdom and provide access to financial services by all segments of society.

SAMA stressed the importance of exclusively dealing with licensed and authorized financial institutions.