03 December 2024
The Insurance Authority has issued a decision to localize all sales
positions in insurance products starting from April 15, 2024. This decision is
based on the aim to support and enhance the effectiveness of the insurance
sector, as well as to support and empower national competencies and
capabilities in the insurance industry.
The decision is in accordance
with the authority's mandates and powers to regulate insurance activities in
the Kingdom, and to oversee and supervise them under the Insurance Authority's
regulation, issued by Cabinet Decision No. 85 on 28/01/1445 H. The decision
states that non-specialized sales employees will not be granted any commissions
related to sales. The Insurance Authority will monitor the implementation of
the localization decision from the date of its issuance until reaching the
targeted localization percentage.
This is done in line with the supervisory and regulatory roles over the
insurance sector The decision to localize the sales sector is anticipated to
exert a substantial impact, not only on the sector itself, but also on the
overall Saudization rates within the Kingdom.
This move is poised to foster the development of specialized national
competencies with a vested interest in the insurance sector.
Consequently, it is expected to enhance overall performance standards
and elevate the quality of services delivered in the industry.