Nationalization of Saudi Insurance Product Sales Positions Marks a Milestone in Industry Development

By Fahad Talal

The Insurance Authority has recently announced a groundbreaking decision to nationalize all sales positions in insurance products, effective from April 15, 2024. This strategic move is aligned with the overarching goal of fortifying and optimizing the functionality of the insurance sector. Additionally, it seeks to bolster and empower local talents, aligning with the national competencies and capabilities essential for sustained growth in the insurance industry. The directive is firmly rooted in the authority’s established mandates and regulatory powers, as delineated in the Insurance Authority’s regulation, sanctioned by Cabinet Decision No. 85 on 28/01/1445 H.

According to the decision, commissions related to sales will no longer be extended to non-specialized sales employees. The Insurance Authority will actively oversee and monitor the localization implementation process, commencing from the date of issuance until the targeted localization percentage is achieved. This underscores the authority’s pivotal role in regulating and supervising insurance activities within the Kingdom.

The pivotal decision to localize the sales sector is poised to have a far-reaching impact, not only within the insurance sector but also on the broader landscape of Saudization rates in the Kingdom. The initiative is expected to cultivate a cadre of specialized national talents with a vested interest in the insurance domain. Consequently, this move is anticipated to raise performance standards across the industry and elevate the overall quality of services offered.