Effective Jan. 18, insurers, reinsurers and brokers in Saudi Arabia must have a comprehensive risk management strategy in place under new regulations required by the insurance supervision department of the Saudi Arabian Monetary Agency issued last month. The department is requiring under its risk management regulations that a “comprehensive risk management strategy to understand and manage the types of risks arising from their (insurers, reinsurers and brokers) core business operations” be implemented. The company's board of directors and senior management are responsible for assessing, mitigating and monitoring risk under the rules. Insurers, reinsurers and brokers are required to define risk management responsibilities of senior managers, develop contingency plans, provide the monetary agency with risk management reports and meet other requirements. The regulations require, among others, that at least two risk management officers be assigned, one with responsibility for general and health insurance, and the other for savings and protection insurance.
