Al Sagr Insurance receives ‘final warning’ from SAMA to fix irregularities

The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank and insurance market regulator, on Jan. 21 issued a “final warning” to Al Sagr Cooperative Insurance on the insurer’s non-compliance with regulations.

Irregularities included vacancies in executive jobs, the company’s weak technical system and assigning of a material job to a third party without obtaining a prior approval from SAMA, the insurer said in a bourse filing on Tuesday.

The insurer is required to fix all irregularities within 20 business days starting from Jan. 21 and appoint an independent advisor at its own expense to ensure compliance with the market regulator’s rules.

Al Sagr is also required to submit a report to the board of directors on evaluating the audit committee performance within the same period.

Failure to comply with SAMA’s regulations could result in the insurer being banned from issuing or renewing insurance policies.

Al Sagr added it would meet all requirements by the deadline.