SAMA bans Wafa Insurance from issuing, renewing policies

The Saudi Arabian Monetary Authority (SAMA) has banned Saudi Indian Company for Cooperative Insurance (Wafa Insurance) from issuing or renewing insurance policies as of Thursday, May 24.

SAMA, over the years, has repeatedly addressed the insurer on the decreased solvency margin, it said.

According to Q1 2018 audit report, SAMA found that the firm didn’t meet the regulatory requirements as solvency margin drastically dropped.

The ban doesn’t affect Wafa’s obligations towards the existing insurance policies and any resulting claims, SAMA said.

SAMA will not lift the ban until Wafa takes successful measures to meet the required solvency margin, according to Saudi insurance laws, it added.