Foreign Reinsurance Company Registration with the KSA Insurance Authority

Further to the publication of the new KSA draft Insurance Law (‘the Law’), that was open for public consultation until 22 July 2025, the KSA Insurance Authority (‘IA’) has now produced a circular mandating licenced insurance companies that intend to enter into facultative or treaty reinsurance contracts, or deal with foreign reinsurance companies, to verify that such foreign reinsurers have registered on the IA’s designated platform.

Reinsurance brokers are similarly required to verify the registration of foreign reinsurers, when providing their broking services.  

Accordingly, it is necessary for foreign reinsurance companies to provide details to the IA including:

• Credit rating for the last three years (and which agency provided the rating).
• Financial information for the last three years of reinsurance activity (including assets, equity, net income, inward and retroceded reinsurance premiums, retention ratios).
• Business projection for reinsurance business from KSA (including general, life and health).
• Whether there are any existing activities in the Kingdom.

Registration on the platform does not exempt foreign reinsurers from complying with Article 42 of the Implementing Regulations of the Cooperative Insurance Companies Control Law which provides, inter alia, that:

• The foreign reinsurer be licensed and authorised in its country of domicile to transact the classes of business proposed in the Kingdom.
• The foreign reinsurer maintains separate records and financial statements of all Saudi operations and provides the KSA regulator with any related information upon request.
• The KSA regulator be provided with the latest regulatory or supervisory report issued by the foreign reinsurer’s supervisory authority.
• The insurance supervisor of the foreign reinsurer authorises the exchange of relevant information with the KSA regulator.

In terms of enforcement, the circular expects that KSA licensed insurers and reinsurance brokers will encourage foreign reinsurers to register on the platform. It provides that the IA will take regulatory action against licensed insurance companies that enter into new or renewed reinsurance contracts with foreign reinsurers that are not registered by 1 March 2026.     

This development, alongside the new draft Law, can be seen as evidence of the IA’s goal of regulating, supervising and controlling the insurance sector in the Kingdom. We anticipate that foreign reinsurers are also looking forward to the new draft Law, or further regulations, rules and guidelines, providing clarity on the criteria required to obtain a license or establish a branch in KSA, and, moreover, clarity on whether such will be necessary to accept cessions on a cross-border basis from Saudi cedants.