Saudi Arabia has allowed the operation of a foreign health insurance company in the country for the first time, with its central bank announcing granting license to Cigna Worldwide Insurance Company on Monday.
The Saudi central bank SAMA said its move is to enable new international entrants to enhance the quality of services, increase the diversification of investors, and introduce unique business models to the market.
Cigna will be the first foreign health insurance company branch in Saudi Arabia, SPA reported.
The licensing of new foreign branches aims to fulfill the objectives of the ‘Rules for Licensing and Supervision of Branches of Foreign Insurance and Reinsurance Companies in Saudi Arabia’, SAMA said.
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SAMA said its decision on greenlighting Cigna’s operations in the country is also part of its initiative to encourage foreign direct investment to increase the competitiveness of the sector, and utilize the potential of the Saudi economy.
SAMA has of late been taking several measures to support the financial sector to raise the effectiveness and flexibility of financial transactions and encourage innovation in financial services. Consequently, this will enhance financial inclusion in Saudi Arabia and provide access to financial services by all segments of society, the bank said.
SAMA, however, cautioned the importance of exclusively dealing with only licensed and authorized financial institutions.
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