The Saudi Insurance Authority (IA) has taken action to revoke the licences of 28 insurance and brokerage companies.

This move is part of a broader strategy to stabilise and improve the performance and credibility of the insurance sector in the country.

According to a Saudi Gazette report, these decisions are grounded in the Cooperative Insurance Companies Control Law and other relevant regulations.

The revocations are the culmination of a series of corrective measures that began on 28 August 2024.

They aim to protect the rights of insured individuals and beneficiaries while promoting financial stability within the sector.

The companies affected by these licence revocations include Shire Insurance Agency, Al-Bulurat Insurance Brokerage Services, Al-Sabil Asia Insurance and Reinsurance Brokerage, Al-Aman Insurance and Reinsurance Brokerage, and Future Vision Insurance Brokerage.

The list of companies whose licences have been terminated extends to Ahed Saudi Insurance Agency, Al-Rabt Saudi Insurance Brokerage, Aman Gate Insurance Agency, Fursan Insurance Agency, Insurance Management for Insurance Agency, Laval Insurance Brokerage, Panorama Elite Insurance Agency, Saudi Agents Insurance Agents, Saudi Shield Insurance Agency and Takaful Amanah Cooperative Insurance Agency.

Eng. Naji Al-Tamimi, CEO of the Insurance Authority, previously indicated that the IA is considering the elimination of health insurance pre-approval systems.

These systems are designed to confirm medical necessity and mitigate health risks but have faced criticism for causing delays detrimental to beneficiaries.

Al-Tamimi also mentioned that the Authority plans to start publishing performance indicators including the complaint rate in relation to the number of individual health and motor insurance policyholders for each insurance company.

Earlier this year, insurance brokerage Willis Towers Watson was granted a licence to operate as a reinsurance broker in Saudi Arabia.