SAMA issues regulations to form, manage health insurance risk pools via brokers

RIYADH — The Saudi Central Bank (SAMA) has issued regulations for forming and managing health insurance risk pools through brokers.

In a statement carried by the Saudi Press Agency on Wednesday, the central bank said that rules aim to regulate and develop the mechanism of forming and managing health insurance risk pools and providing access to suitable insurance coverage at low costs.

The move is part of the central bank's ongoing efforts to develop the insurance sector, support SMEs and facilitate access to suitable insurance coverage at affordable prices, according to the statement. Health insurance risk pools provide SMEs the ability to secure the best health insurance coverage at the best prices and insurance coverages in light of a set of rules, which ensure the quality of services provided and fair competition, SAMA pointed out in the statement.

The rules will enable SAMA-licensed insurance brokers to develop and manage risk pools based on their ability to negotiate with insurance companies on behalf of the SMEs in order to meet the employers' aspirations.

The rules aim at preserving the rights of the insurance parties and responding to evolving client needs by setting a regulatory framework for the risk pooling, in addition to regulating the relationship between the employer, the broker and the insurer, the statement added.

Source: Saudi gazette