Regulatory Alerts2021-01-31
Added · Updated
Decision of the Board of Directors No. (7) for 2021 Regarding Insurance Transactions Concluded by Property and Liability Insurance Companies with Their Shareholders
The Financial Regulatory Authority issued Board Decision No. 7 of 2021 to cap annual direct insurance transactions between property and liability insurers and their shareholders at 10% of the company's total direct premiums, with a maximum of 20% per insurance branch. The decision mandates quarterly detailed reporting to the Authority, requires disclosure of pricing and reinsurance arrangements in annual financial statements, and establishes compliance as a mandatory condition for obtaining and maintaining operating licenses. Related persons are defined per the Capital Market Law, and proportional allocation applies when multiple shareholders compete for transaction limits.
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