RIYADH, 23 September — Insurance companies intending to provide cooperative insurance services should have a minimum capital of SR100 million, according to new regulations approved by the Shoura Council.
“Companies providing re-insurance services should have a minimum capital of SR200 million,” said the new bylaw for monitoring services of insurance companies.
Dr. Hamoud Al-Badr, secretary-general of the Shoura, pointed out that the consultative body had completed discussion of most articles of the draft regulation for supervising cooperative insurance companies.
Informed sources told Arab News that the meeting emphasized the need to establish an authority to supervise the services of insurance companies. The authority will have representatives from Saudi Arabian Monetary Agency, the Cooperative Health Insurance Council, the Council of Saudi Chambers of Commerce and Industry and insurance companies and two representatives for the insured. The commerce minister will be its chairman.
The Shoura proposed that the term of the authority’s board will be three years. The authority will send two of its members to attend the general assembly of insurance companies. It can propose changes to the supervisory regulations. A total of 55 Shoura members supported the idea of establishing the authority while 45 opposed. The Shoura will again debate the issue and put it to vote next week. It needs 61 votes for approval.
A~l-Badr said the council also discussed the report of its Regulations and Administration Committee on delivering services to houses whose residents have no ownership deeds. The council session was attended by Saudi ambassadors to Hungary, Burkina Faso, Ivory Coast and Eritrea.
