Gulf Union gets ‘final warning’ from SAMA to fix irregularities

The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank and the insurance market regulator, has issued a final warning to Gulf Union Cooperative Insurance Co. regarding the “weak performance” of its audit committee, its executive management, as well as ineffective corporate governance.

The insurer must fix all irregularities outlined in SAMA’s letter within 20 days to avoid the authority’s action against the company. The statement was issued April 1, 2018.

Failure to comply with SAMA’s regulations could result in Gulf Union being banned from issuing or renewing insurance policies.

Gulf Union in a statement to Tadawul said it would meet all requirements before the deadline.