The Insurance Authority took over from SAMA in November 2023
The IA was created under its own Statute, approved by Council of Ministers Resolution No. 85 dated 28/1/1445H (August 2023). Law-firm commentary describes it as reporting to the Prime Minister, with financial and administrative independence. The IA's website states that it became the authorised insurance regulator from 23 November 2023, and SAMA's insurance mandate moved across in that transition. Health insurance mandates followed from the Council of Health Insurance on 4 March 2024, according to the same commentary.
The core sector law has not changed yet. It is still the Cooperative Insurance Companies Control Law, Royal Decree M/32 dated 2/6/1424H (31 July 2003), amended by Royal Decrees M/30 and M/12, with Implementing Regulations issued by Minister of Finance Decision 1/596. The Cooperative Health Insurance Law of 1999 now sits with the IA as well.
Rules issued in the SAMA era stay in force until the IA replaces them. That is why several instruments an insurtech works with, including the insurance aggregation rules, are still published on the SAMA Rulebook. Insurance complaints have moved to the IA, while any payment activity in your product stays with SAMA.
Who needs an IA licence
| Business model | Where it sits | What to check first |
|---|---|---|
| Insurer or reinsurer | IA licence under the Cooperative Insurance Companies Control Law | Capital, governance and the IA's current application requirements |
| Broker or agent | IA licence as an insurance service provider | Whether you also compare or sell policies online |
| Aggregator or e-broker | Rules Governing Insurance Aggregation Activities (SAMA Governor Decision 441/4, announced 19 February 2020) | Commentary on the rules puts minimum capital at SAR 500,000 for an aggregator only and SAR 3,000,000 for a broker that also aggregates |
| Loss adjuster, third-party administrator or actuary | Service-provider categories listed in law-firm commentary | Confirm the current category list with the IA |
| Embedded insurance or digital distribution | Inside IA licensing | Who the licensed distributor is, and what your platform does in the sale |
The service-provider categories and the aggregator capital figures come from secondary sources. We have not confirmed whether the IA has re-issued the SAMA aggregation rules under its own name, so we check the current text before you plan capital.
Insurtech, aggregation and open insurance rules
The IA inherited a set of instruments written for online sales. Commentary refers to an Online Insurance Activities Regulation from 2011 and insurtech rules issued in 2023. For comparison sites and e-brokers the aggregation rules matter most: they decide who may compare and sell policies online and on what capital base.
A draft Open Insurance and Insurtech Regulations was published in 2025, covering API data-sharing and digital distribution, according to Al Tamimi. We have not seen it finalised. If your product depends on pulling policy or customer data from insurers through APIs, design for that draft and keep the data model consistent with the Personal Data Protection Law.
The market is still small. Reporting on the Financial Sector Development Program's 2024 annual report counted 14 IA-licensed fintechs at the end of 2024, against 138 licensed by SAMA and 52 by the CMA.
Testing first in the Insurance Lab
The IA launched its Insurance Regulatory Sandbox Framework, the Insurance Lab, in September 2024. The framework is published on the IA website and covers scope, target segments, phases, reporting, extension and exit.
The Lab suits a model that does not fit an existing licence category, or one that needs live customers to prove the concept. A sandbox place is time-limited and ends in exit or a licence application, so we write the test plan around the evidence the IA will want at the end: customer outcomes, complaints, incidents and the controls that worked.
How an IA licence project runs
Map the model
We trace who carries the risk, who sells, who handles premiums and claims, and what data moves. That decides whether you are an insurer, a broker, an aggregator, an embedded partner or a mix.
Pick the route
A full licence, the Insurance Lab, or a partnership with a licensed insurer or broker while you prepare. Fintech Saudi runs 30-minute "Meet the regulators" sessions with the Insurance Authority that are useful for early questions.
Set up the entity
Legal form, capital and investment registration, in the right order. See incorporation.
Build the file
Business plan, projections, governance, risk management, outsourcing, information security, AML/CFT and customer-protection policies, in Arabic and English.
Regulator dialogue
We draft responses to the IA's questions and track each condition through to the licence and go-live.
Where the regime stands in October 2026
| Item | Status |
|---|---|
| IA as insurance regulator | In place since 23 November 2023 |
| Cooperative Insurance Companies Control Law (2003) | In force, as amended |
| Draft new Insurance Law | Consultation closed 22 July 2025; no evidence of enactment found |
| Draft Open Insurance and Insurtech Regulations (2025) | Draft; finalisation not confirmed |
| Insurance Lab sandbox | Open since September 2024 |
| National Insurance Sector Strategy | Approved by the Council of Ministers in January 2026, as reported; the IA homepage has a section on it |
The new Insurance Law is still a draft
A draft new Insurance Law went to public consultation until 22 July 2025. According to HFW, it would consolidate the 2003 law and the insurance provisions of the health insurance law. We found no evidence that it had been enacted as of October 2026.
Applications today are assessed under the current law and the rules carried over from SAMA. We build your file on those, and keep a short list of the draft provisions that would change your model so you are ready if the law is passed.
Common questions
Does SAMA still license insurance companies?
No. The Insurance Authority has been the insurance regulator since 23 November 2023. Some SAMA-era rules, including the insurance aggregation rules, are still on the SAMA Rulebook and stay in force until the IA replaces them.
Do we need an IA licence to sell insurance inside our app?
If your platform arranges, compares or sells policies, plan on IA licensing or on partnering with a licensed broker or aggregator. Embedded and digital distribution models sit inside the IA's perimeter.
Is the new Insurance Law in force?
We found no evidence that it has been enacted. The draft went to consultation until 22 July 2025. Plan on the 2003 Cooperative Insurance Companies Control Law and its regulations.
Can an insurtech test before applying for a full licence?
Yes, through the Insurance Lab, the IA's regulatory sandbox launched in September 2024. A place is time-limited and leads to exit or a licence application.
Primary sources
Last reviewed: 11 October 2026
General information, not legal advice. Saudi rules change; we confirm every requirement against the regulator's current text before you file.
