This regulation enumerates SAMA’s requirements for Insurance/Reinsurance Companies and Insurance Services Providers that have entered or are intending to enter Outsourcing arrangements. This regulation is also applicable to any Outsourcing arrangements whether with a domestic or foreign Third Party.

The objective of this regulation is to set controls to organize the relationship between Insurance/Reinsurance Companies and Insurance Services Providers and Third Parties in order to ensure that this relationship does not affect the compliance with laws and regulations governing the Saudi Insurance Market, and that Outsourcing Arrangements do not hinder Policyholders’ rights.

. This regulation is applicable to all Outsourcing Arrangements entered into by licensed Insurance/ Reinsurance Companies and Insurance Service Providers under the Law on Supervision of Cooperative Insurance Companies promulgated by Royal Decree M/32 dated 2/6/1424 H including all their branches and subsidiaries licensed in Saudi Arabia (hereinafter referred exclusively as “Insurers and Insurance Services Providers”).

This regulatory regulation must be reviewed in conjunction with the Cooperative Insurance Companies Control Law and its executive regulations, the Regulatory Regulation of Insurance Market Conduct issued by SAMA, in addition to any other regulatory regulations or instructions issued by the Authority.

“Outsourcing” refers to an Arrangement under which a Third Party (Service Provider) undertakes to provide a service to Insurance Companies and Service Providers previously carried out by itself or a new service to be offered by it. Dealing with Reinsurance Companies and Insurance/ Reinsurance Brokers, Agents, Insurance Claims Settlement Specialists (i.e., Third Party Administrators), Risk Surveyors, Loss Assessors, Loss Adjusters, Actuaries, and Insurance Consultants, is not considered an Outsourcing Arrangement for the purpose of this regulation. In addition dealing with Service Providers that the company is compelled to work with, according to the applicable regulations, is outside the scope of this regulation

“Insurers and Insurance Service Providers” refers to any Insurance/ Reinsurance Company and Insurance Service Provider licensed by SAMA under the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations.

1 4 “Third Party”, refers to any Service Provider to whom an activity is outsourced. A Third Party can be a member of the group to which the institution belongs, related company, or an unrelated Third Party, whether located in Saudi Arabia or elsewhere.