Al Sagr starts corrective plan to lift suspension on compulsory motor insurance product

Logo of Al Sagr Cooperative Insurance Co.

Al Sagr Cooperative Insurance Co. said it initiated the necessary procedures to obtain approval from the relevant regulatory and supervisory authorities to resume sales of the compulsory third-party motor insurance product.

In a statement to Tadawul, the company reaffirmed its full commitment to all applicable regulatory and supervisory requirements.

For more news on listed companies

In this regard, the company has submitted its corrective plan to the Insurance Authority (IA) and has taken all necessary measures to ensure full compliance with these regulations and guidelines.

The insurer will continue to coordinate with the relevant authorities to ensure ongoing adherence to all regulatory and supervisory requirements, reinforcing customer confidence and protecting the interests of policyholders, the statement added.

According to data available with Argaam, the IA decided to bar Al Sagr from selling the mandatory motor insurance product as of Feb. 19 for violating the supervisory and regulatory rules and the board of directors’ failure to adopt effective governance procedures.

The company anticipated that the decision would have a negative impact on its financial results for 2025, though the effect cannot be quantified at the time.

During the same month, Al Sagr announced plans for an early meeting with the IA following a decision citing a violation of the supervisory authority's instructions.

The meeting will focus on discussing a corrective action plan and taking the necessary steps to fully comply with supervisory and regulatory policies and instructions.