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The Insurance Authority has submitted draft licensing requirements for underwriting activity through the public consultation platform “Istitlaa” until Jan. 15, 2026. 
The aim of introducing licensing requirements for underwriting activity is to grant insurance companies greater flexibility in risk distribution and product development, expand the insurance market, and enhance pricing quality by strengthening specialization and expertise and improving pricing accuracy through broader data availability and deeper risk analysis. The move may also help attract foreign companies with advanced underwriting expertise, said the Authority.
The requirements stipulate that the licensing provisions apply to those seeking a license to practice underwriting activity, licensed entities, and companies contracting with them. License applications must be submitted to the authority, and the activity may not be practiced without obtaining a license. It is also required that the licensed entity’s head office and management be located within the Kingdom, it added.
The requirements set a minimum capital of SAR 1 million for granting a license, in addition to obtaining professional liability insurance with coverage of no less than SAR 3 million. They also require the availability of qualified professional competencies for underwriting positions, and that at least one-third of the members of the board of directors or board of managers possess experience or professional certifications in underwriting.
The Authority further outlined the licensing procedures, stating that the applicant will be notified within 30 working days of the application’s completeness or any deficiencies, with an equivalent period granted to rectify them. A decision on the application will be issued within 90 working days from the date the application is completed. It emphasized that licensees must comply with the defined scope of business, enter into clear contracts with companies, and adhere to applicable laws and regulations, noting that violations of the requirements will subject offenders to statutory penalties.
Logo ofThe Insurance Authority
The Insurance Authority has submitted draft licensing requirements for underwriting activity through the public consultation platform “Istitlaa” until Jan. 15, 2026.
The aim of introducing licensing requirements for underwriting activity is to grant insurance companies greater flexibility in risk distribution and product development, expand the insurance market, and enhance pricing quality by strengthening specialization and expertise and improving pricing accuracy through broader data availability and deeper risk analysis. The move may also help attract foreign companies with advanced underwriting expertise, said the Authority.
The requirements stipulate that the licensing provisions apply to those seeking a license to practice underwriting activity, licensed entities, and companies contracting with them. License applications must be submitted to the authority, and the activity may not be practiced without obtaining a license. It is also required that the licensed entity’s head office and management be located within the Kingdom, it added.
The requirements set a minimum capital of SAR 1 million for granting a license, in addition to obtaining professional liability insurance with coverage of no less than SAR 3 million. They also require the availability of qualified professional competencies for underwriting positions, and that at least one-third of the members of the board of directors or board of managers possess experience or professional certifications in underwriting.
The Authority further outlined the licensing procedures, stating that the applicant will be notified within 30 working days of the application’s completeness or any deficiencies, with an equivalent period granted to rectify them. A decision on the application will be issued within 90 working days from the date the application is completed. It emphasized that licensees must comply with the defined scope of business, enter into clear contracts with companies, and adhere to applicable laws and regulations, noting that violations of the requirements will subject offenders to statutory penalties.
