Article 6 of the Saudi Insurance Authority Statute

This article provides that the board is the supreme authority of the Insurance Authority. It supervises the Authority, conducts its affairs and manages it, and takes the decisions necessary to achieve its purposes, within its statute and the laws relating to the insurance sector.

Its powers include in particular:

• Planning: Approving the national strategy for the insurance sector, the general policies, plans and programs, and approving performance measurement indicators.
• Internal organization: Approving the organizational structure and the regulations, with the administrative regulations approved in agreement with the Ministry of Human Resources and Social Development, and the financial regulations and provisions with a financial impact approved in agreement with the Ministry of Finance.
• Legislation: Proposing draft laws or amendments and submitting them.
• Finance and accounts: Approving the budget, the final account, the annual report and the auditor's report; appointing an external auditor and an internal financial controller; and accepting gifts, donations, bequests and endowments.
• Supervision of the sector: Appointing those who carry out inspection, supervision and enforcement for violations of the laws of the insurance sector.
• Fees: Setting the fee for the services and work the Authority provides.
• Other: Approving the establishment of branches and the conclusion of agreements and contracts, reviewing periodic reports and evaluating the performance of the executive management.

Committees and delegation: The board may form permanent or temporary committees from its members or others, with the formation decision setting the chair, members and powers of each. It may delegate some of its powers to the chairman, its members or the Authority's staff.

It matters to insurance companies and licensees that the board sets the fee for the Authority's services and appoints those who carry out inspection and enforcement. Anyone facing a supervisory action would do well to consult a lawyer who specializes in insurance and commercial cases.