Final reminder: Imminent deadline for mandatory registration of foreign reinsurers in Saudi Arabia

The Insurance Authority of the Kingdom of Saudi Arabia (IA) has confirmed that reinsurers with exposure to risks associated with the KSA must comply with the registration requirement by 1 March 2026.

1.    Who must register?

Any foreign reinsurer participating in the underwriting or renewal of risks connected to the KSA, whether through facultative or treaty arrangements, must complete registration on the IA’s designated electronic platform as a precondition to participation. The requirement applies irrespective of whether the reinsurance is placed directly or via intermediaries and therefore captures all reinsurance linked to KSA risks. 

2.   What are the key obligations?

• By 1 March 2026, foreign reinsurers must complete registration on the IA’s electronic system before entering or renewing any facultative or treaty reinsurance contract that covers risks associated with the KSA.
• The registration process entails submitting prescribed corporate, regulatory, and financial information through the IA platform.
• Prior to execution of any placement, KSA-licensed insurers and reinsurance brokers will be required to confirm that the foreign reinsurer is duly registered and satisfies all applicable regulatory and solvency criteria.

3.    What are the potential consequences of non-compliance?

The IA has made clear that it will pursue enforcement measures against any Saudi-licensed insurer or brokerage that enters into new or renewed reinsurance arrangements with foreign reinsurers who have not completed the required registration prior to the 1 March 2026 deadline. The consequences of non-compliance could include regulatory warnings, penalties, license suspension, and public naming of non-compliant entities. Recent regulatory practice in KSA indicates an increasing willingness by the IA to impose public sanctions as a deterrent against non-compliance with regulations, particularly in instances where it affects prudential stability or market transparency. A recent example of this is when the IA issued a SAR 1 million financial penalty on an insurer for violating AML regulations.

4.    Recommendations

Foreign reinsurers currently underwriting KSA risks should prioritise completion of the required IA registration well in advance of the 1 March 2026 deadline to avoid disruption to renewals or general operations Moreover, KSA-licensed cedants and reinsurance brokers should introduce checks within their processes and retain documentary evidence of registration status of foreign reinsurers. In respect of internal governance, firms may also wish to update internal underwriting guidelines and broker checklists to include the IA registration requirement.

For additional information contact Saud Alsaab or Michael Morris.